MGM Management to Propose $8 Dividend

Metro-Goldwyn-Mayer Inc. said its management would recommend that directors set $8 a share as the size of a special dividend the Los Angeles studio is considering paying shareholders.

MGM previously said it may issue the dividend, which would total nearly $1.9 billion, because it was generating ample cash and had become debt free.

About $1.4 billion of the payout would go to controlling shareholder Kirk Kerkorian. The company said its board would make the recommendation after MGM refinanced its credit facility later this month.

-- James Bates