MGM Mirage's high rolling stock

NEW YORK (CNNMoney.com) -- Shares of MGM Mirage surged more than 29 percent Tuesday, a day after billionaire investor Kirk Kerkorian's Tracinda Corp. announced it was exploring strategic options for its stake in the casino and hotel operator.

Tracinda said late Monday it plans to enter talks to purchase MGM Mirage's Bellagio Hotel and Casino and City Center properties in Las Vegas.

Shares of MGM Mirage (up $16.87 to $79.81, Charts, Fortune 500) jumped 29.3 percent in morning trading on the New York Stock Exchange.

In a statement, the investment firm said it is considering "strategic alternatives," including a restructuring transaction, for its investment in MGM Mirage although it has not yet made a decision and reserves the right "not to engage in or approve any transaction."

"I'm sure who ever ends up with those units will reap the benefits," said James Hardiman, an analyst at FTN Midwest Securities Corp. But even if the two properties were sold, Hardiman said MGM Mirage would still be a solid company.

Hardiman said Tracinda wants people to realize that the properties are sitting on profitable real estate, and that's largely why they made the announcement.

Tracinda currently owns a 56 percent stake in MGM Mirage. In January, the investment firm failed at trying to increase its stake to more than 61 percent.

Rival casino stocks also jumped, with Wynn Resorts Ltd. (up $6.86 to $101.05, Charts), Boyd Gaming Corp. (up $2.96 to $50.00, Charts) and Las Vegas Sands Corp. (up $4.32 to $80.23, Charts) up about 6 percent.