Land And Buildings Says MGM Shareholders Lack Of Confidence In CEO Jim Murren

(RTTNews) - In letter to the shareholders of MGM Resorts International (MGM) following the G2E gaming conference last week in Las Vegas, Land and Buildings Investment Management, LLC said Thursday that other MGM shareholders agree with its view, that CEO Jim Murren has lost credibility with shareholders and the market.

Land and Buildings noted that Murren's new employment contract is an outrage to shareholders as he gets paid for staying in his chair not whether he is making or losing money for shareholders.

Land and Buildings believes there are other highly qualified executives who could lead MGM and would be perfectly well suited to replace discredited CEO Murren.

Land and Buildings noted that MGM's fair value is by its estimate in excess of $35 per share, or 35% above current levels.

Land and Buildings urged MGM to separate the chairman role of each of the public companies (MGM China, MGM Resorts, and MGM Growth Properties) would be a healthy start along with removing overlapping directors among the Boards at those companies; Liquidate, spin or create a tracking stock of MGM China.

Land and Buildings suggested that CityCenter can be sold on a tax efficient basis given the substantial net operating losses, and the cash proceeds can be used to pay down debt. It ask the company to sell the real estate of Bellagio and MGM Grand to the highest bidder on a tax efficient basis.