Last month's announcement that Kirk Kerkorian was interested in taking MGM Mirage's Bellagio and Project CityCenter private drove up MGM Mirage's stock by 27 percent.

Today, MGM Mirage announced Kerkorian (who already owns 56 percent of the casino conglomerate worth $24.5 billion) is dropping his pursuit of the two high-end casinos and will instead partner with Kerzner International Holdings to develop a new North Strip resort across 40 to 80 acres of property owned by MGM Mirage.

Completion of the property could bear the MGM Mirage or Kerzner name, and would bring Kerzner (who owns Atlantis in the Bahamas) his first presence in Las Vegas.