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Magna Entertainment spin-off canceled (AP)

Thu, 19 Feb 2009 03:55:39 Etc/GM

AURORA, Ontario (AP) -- The proposed spin-off of Magna Entertainment Corp., a racetrack operator, by its controlling shareholder, MI Developments Inc., to MID's existing shareholders has been canceled, the company said Wednesday.

MI Developments, a property-management company, said the spin-off of MEC was canceled due to "current global economic conditions," and it is uncertain that it could find new debt financing amid turmoil in financial markets and the autos sector.

MI Developments said it is in discussions with Magna Entertainment concerning "alternatives" to its investment in the company.

The deal, proposed last November, would have left Magna Entertainment under the control of its chairman and chief exectuive, Frank Stronach, as a stand-alone gaming company.

Magna Entertainment was spun off from auto-parts company Magna International in 2000. MI Developments was spun off by Magna International in 2003.


source: http://biz.yahoo.com/ap/090218/magna_entertainment_mi_developments.html?.v=1

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