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Shareholders Seek "Major Financial Shakeup" At Magna

Friday, 24th October 2008

Institutional investor Farallon Capital Management & technology entrepreneur Halsey Minor are separately asking controlling shareholder MI Developments "for a major financial shake-up of the racing conglomerate & debt-laden racetrack owner Magna Entertainment Corp," reported bloodhorse.com. Farallon said it believes MID should "end its support" of Magna, which it termed "a sinkhole." And Minor declared Magna "has been a cash incinerator for MID". Magna owns Santa Anita Park (site of this weekend's Breeders' Cup World Championships) plus Gulfstream Park & 7 other US thoroughbred tracks. According to its most recent financial reports, Magna lost US$67.7 million during the initial 6 months of 2008 & to June 30 "had an accumulated deficit of US$577.8 million with a working capital deficiency of US$151.1 million & a debt load of US$229.8 million due to mature this year".

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