Canadian-based auto parts firm and racetrack operator
Magna Int'l announced yesterday that it will spin off a new
entertainment subsidiary, MI ENTERTAINMENT, to be headed by
former Republic Bancorp Chair & CEO JERRY CAMPBELL,
according to Tony Van Alphen of the TORONTO STAR. MI
Entertainment will "soon be spun off into" a public company,
and analysts said that Magna "has stacked the MI board and
management with considerable talent for its bold foray into
horse racing, wagering and other leisure businesses."
Campbell is Chair of Great Lakes Downs in MI, a track which
MI has just acquired "for an undisclosed sum." Joining
Campbell on MI's management team will be former Caesars
World Exec DAVID MITCHELL, who will become MI Exec VP & CFO,
and Magna Chair FRANK STRONACH's son, ANDREW STRONACH, who
will be MI VP/Corporate Development. MI plans to look into
the "possibility" of sports betting through telephones,
interactive TV and the Internet. The company "also wants to
develop real estate around some of its tracks," with retail
outlets and restaurants, "to make them tourist destinations"
(TORONTO STAR, 1/18). The spinoff of MI will be completed
by "early March" (Edward Alden, FINANCIAL TIMES, 1/18).
