Jedwab v. MGM Grand Hotels, Inc.

OPINION

ALLEN, Chancellor.

MGM Grand Hotels, Inc., a Delaware corporation (“MGM Grand” or the “Company”) that owns and operates resort hotels and gaming establishments in Las Vegas and Reno, Nevada, has entered into an agreement with Bally Manufacturing Corporation, also a Delaware corporation, (“Bally”) contemplating a merger between a Bally subsidiary and the Company. On the effectuation of such merger, all classes of the Company’s presently outstanding stock will be converted into the right to receive cash.

Defendant Kerkorian individually and through Tracinda Corporation, which he wholly…