GM, which partners with Boyd Gaming to manage the Borgata property, is reportedly asking for between us$ 700 million and us$ 850 million for its half. However, interested buyers feel the business is worth about us$ 500 million to us$ 550 million, sources told the Journal.
MGM hopes that its plan to sell its Atlantic City interests will convince New Jersey regulators to agree to curtail their regulatory oversight of the company. An unfavorable regulatory ruling could impact MGM's interests elsewhere including a proposed initial public offering of its Macau assets in Honk Kong later this year, the Journal notes.
Last year, New Jersey's Division of Gaming Enforcement issued a confidential report saying MGM should disassociate from Pansy Ho, its joint venture partner in Macau, labeling her an "unsuitable" business partner.