King Sells MGM Stake in Tyson Aftermath

MGM Grand controlling owner Kirk Kerkorian has bought out fight promoter Don King’s stake in the hotel and casino as part of the company’s decision to scrap its deal with boxer Mike Tyson.

The contract with Tyson was severed July 11 after the Nevada Athletic Commission banned him from boxing for biting Evander Holyfield’s ears during a match at the MGM Grand the previous month.

Kerkorian’s Tracinda Corp. bought the 618,557 shares--a 1% stake--for $44.50 a share, or $27.5 million. The price is 75 cents per share above its high close Wednesday, representing a $464,000 premium for King.

MGM Grand had promised King that he would get $30 million for the stock when the contract expired in March 1998.

MGM Grand stock fell $1.25 Friday to $42 per share on the New York Stock Exchange. Terms of the deal were included in a filing with the Securities and Exchange Commission on Thursday.

The shares owned by King were part of a deal the promoter made when boxer Mike Tyson was signed to a six-fight contract. Jack Leone, MGM Grand vice president of communications, said the termination of the Tyson contract “was mutually agreed by both parties.”