MGM Ends Merger Talks With Barry Diller's People Inc., Agrees Revised Voting Pact Capping Stake at 29.9%
LAS VEGAS, Clark County, Nevada — MGM Resorts said on October 28 that merger talks with its largest shareholder, Barry Diller's People Inc., are over after the two sides amended their voting agreement, and that no transaction is currently being considered.
Under the amended pact, People, Diller and related entities will vote all their MGM shares in line with the board's recommendation in connection with a change-of-control transaction, and the group's combined ownership is capped at 29.9%. MGM, in turn, agreed not to adopt defensive measures targeting People and its affiliates while they comply with the agreement. MGM Chairman Paul Salem said the agreement gives the company a clear path to share buybacks and, if applicable, a change-of-control transaction.
People had offered on June 1 to buy the MGM shares it did not already own at $48.30 per share and withdrew that proposal on September 23; reports later emerged that MGM might acquire People instead. MGM CEO Bill Hornbuckle told analysts on the third-quarter call that the back-and-forth dialogue over 'you buy us, we buy you' is done, and that this is both companies' position.
Source: GSM · USA
Source: GSM · USA (original Chinese edition)
Photo: Wikimedia Commons / Laslovarga / CC BY-SA 3.0
