10/05/2010 4:00PM

MI Developments shares rise


Shares in the racetrack operator MI Developments rose again on Tuesday, by 3.3 percent to $14.56, to remain well above a recent offer tendered by the company's chairman, Frank Stronach, to buy all of the stock in the company that he does not already own for $13 a share.

Trading volume on Tuesday was 492,000 shares, about six times the average trading volume for the stock. On Monday, the stock rose 32 percent, to $14.09, on trading volume of about 10 times the average.

Stronach made the offer on Friday night, according to MI Developments. The rise of the stock indicates that investors believe the offer undervalues the company, which had a market capitalization of $680 million on Friday despite a balance sheet worth $2 billion.

The total value of Stronach's offer, at the $13 price, would cost him $600 million. Forbes has estimated that Stronach has a net worth of $1.2 billion.

MI Developments owns Santa Anita Park and Golden Gate Fields in California; Gulfstream Park and an adjacent casino in Florida; half of Laurel Park and Pimlico Racecourse in Maryland; and an account-wagering company, XpressBet, among other racing and real-estate assets.