After dueling with Daimler and losing again, Kirk Kerkorian has decided to take on someone his own size: himself. In a move that has analyst's opinions all over the map, Kirk Kerkorian's Tracinda Corporation announced it will negotiate with MGM Mirage (NYSE:MGM) for its two best properties. The Bellagio and the under-construction CityCenter could fetch as much at $12 billion.

The odd part of the story is that Kerkorian owns 56% of MGM Mirage. Other stockholders are not responding well to what they perceive as an attempt to cherry-pick the company's assets, questioning Kerkorian's motives. Some suggest he is trying to force the company onto the sales block, drooling at the potential price in light of Harrah's recent $17.1 billion sale.

He could also be hoping to play both ways; strip off the most lucrative assets, then hope the remaining package is still alluring enough to draw venture interest. Left on the table for the moment is MGM's Grand Macau, possibly signaling Kerkorian's uncertainty about that market.

A key part of this deal is MGM's CityCenter development, a casino-retail-hotel- condominium complex that will cost an estimated $7.9 billion. With the recent cancellation of other Vegas high-roller condo developments, CityCenter is either well poised to take advantage of the Vegas property boom or vulnerable to the slackening housing market. Probably the former.

The market has shown love for the idea, so far, jumping up 30% by midmorning on the news.