KIRK SERVES UP WINNER OF A YEAR FOR BIG DEALS
By PAUL THARP
New York Post, NY
Sept 15 2004
September 15, 2004 — At 87, wily investor Kirk Kerkorian still has
his healthy vigor and up to $20 billion to spread around. His two
mega-deals this year – the sale of his fabled MGM studios for $4.6
billion and the creation of a proposed $10 billion casino empire
he controls – has nearly tripled his personal fortune in the most
lucrative year of his colorful life.
Kerkorian is celebrating his success by taking his tennis racquets
in hand this week to scramble against other players – all over the
age of 50 – in a remarkable tournament, the World Seniors Tennis
Championship in Philadelphia.
One of his archrivals on the grass courts is 92-year-old former Davis
Cup player Gardnar Mulloy, the second-oldest player in the event,
which concludes for its 1,250 accomplished players on Sept. 26.
Kerkorian is, meanwhile, awaiting word on his effort to collect still
another $3 billion from DaimlerChrysler AG in a tangled lawsuit over
his one-time control of the automaker.
The car maker claims in other court papers that Kerkorian actually
made a profit of $2.7 billion on his investment in the company,
but Kerkorian claims in his suit he took a $3 billion bath on the
1999 merger.
In any event, Kerkorian clearly has a plan for his swollen fortune –
giving it away.
He has set up foundations for his two daughters to spend on making
the world a better place.
The endowment is enough to last a century, based on government
regulations that require a foundation to give away just 5 percent
annually of the profits earned by its investments.
Tax experts say Kerkorian’s estate, worth up to an estimated $20
billion, would be spared heavy taxation by making endowments to the
key foundation.
Some of the cash flows would come from Kerkorian’s casino merger of
his MGM Mirage and Mandalay Resort Group – should regulators clear
it later this year. It would create one of the world’s largest gaming
empires, throwing off cash flows of up to $6 billion a year.
The thrice-married and divorced Kerkorian recently stepped up his
contributions to one of the charitable foundations he founded in 1988 –
the Lincy Foundation, named after his two daughters, Linda and Tracy.
His business holding company, Tracinda Corp., is also named after the
daughters, both from his second marriage in 1954 to Jane Maree Hardy.
Kerkorian’s third wife is in her 30s.
Tracinda supports the charitable foundations with as much as $40
million a year in direct donations.
Their family foundation has awarded hundreds of millions to a wide
range of humanitarian efforts around the world, in areas including
health, education, athletics and global economies.
One favorite cause in recent years was rebuilding the economy of
Armenia, Kerkorian’s homeland.
The foundation, headquartered on South Rodeo Drive in Beverly Hills,
has awarded more than $165 million alone in support to Armenia’s
government and economic organizations.
Kerkorian has placed some of his trusted executives on the foundation
board to protect its assets, which exceed $220 million, according to
recent filings.
Kerkorian built his first big fortune by flipping the MGM movie studio
three times since first acquiring it in 1970.
From: Emil Lazarian | Ararat NewsPress