Hudson Securities Comments On MGM Resorts Macau IPO (MGM)

Hudson Securities provided color on MGM Resorts' MGM recent Macau IPO announcement in a research report published today. Hudson Securities has previously given MGM Resorts a $12 price target and Hold rating. In the report, Hudson Securities states, "MGM announced news on a forthcoming Macau IPO. The company entered into an agreement for a proposed IPO and concurrently announced a convertible bond transaction. MGM will join the 5 other Macau licensees by going public. The shares will be listed on the HK stock exchange and the agreement calls for pursuing the closing of the deal by June 30, 2011. We think the deal make sense, gives MGM majority control of its Macau property, and is tax-efficient. That said, we don't see it as a de-leveraging event and the deal is only modestly accretive to EPS." Shares of MGM Resorts closed today at $13.94, up 1.75% from Wednesday's market close.