What happened: MGM Resorts International (MGM) stock jumped 16% on Monday.
What’s behind the move: People Inc., the media company run by billionaire Barry Diller, submitted a bid to take over MGM for $18 billion, including debt.
People Inc., which already owns a 26.1% stake in MGM, submitted a letter to the company to acquire the remaining outstanding shares of the resort and casino company for $48.30 per share in cash, representing a 24% premium to the average price of MGM’s stock over the past 30 days.
What else you need to know: In a letter to MGM’s board of directors, Diller said his conviction in MGM’s business has strengthened and that People could enhance the company’s value, given its deep familiarity with the business.
"We continue to believe the market materially undervalues the power and durability of MGM's ******* ets,” People Inc. chair Diller said. “We believe MGM’s management team is superb, and that there is a compelling opportunity to support MGM’s next phase of growth and help unlock its full value.”
What’s behind the move: People Inc., the media company run by billionaire Barry Diller, submitted a bid to take over MGM for $18 billion, including debt.
People Inc., which already owns a 26.1% stake in MGM, submitted a letter to the company to acquire the remaining outstanding shares of the resort and casino company for $48.30 per share in cash, representing a 24% premium to the average price of MGM’s stock over the past 30 days.
What else you need to know: In a letter to MGM’s board of directors, Diller said his conviction in MGM’s business has strengthened and that People could enhance the company’s value, given its deep familiarity with the business.
"We continue to believe the market materially undervalues the power and durability of MGM's ******* ets,” People Inc. chair Diller said. “We believe MGM’s management team is superb, and that there is a compelling opportunity to support MGM’s next phase of growth and help unlock its full value.”
2 days ago
