Barry Diller Withdraws $48.30/Share Bid for MGM Resorts; Stock Plunges 8.9%
MGM sits 21% above its 52-week low of $29.185.
Summary
Barry Diller and People Inc. have withdrawn their $48.30 per share acquisition offer for MGM Resorts, according to a Wall Street Journal report. People Inc. confirmed it has withdrawn its proposal to purchase all public shares of MGM Resorts International. The stock fell 8.9% to $34.50 in after-hours trading, erasing the takeover premium that had supported the shares since the bid was announced earlier this summer. MGM's board had previously formed a special committee and hired advisers, signaling it viewed the offer as undervaluing the company. People Inc. holds a 26% stake in MGM, and its own shares slipped 1.8% after hours. The withdrawal removes a key catalyst for MGM's stock and leaves the company to rely on its operational performance and buyback program to support the share price.
At the time of this announcement, MGM was trading at $35.35 on NYSE in the Trade & Services sector, with a market capitalization of approximately $9.5B. The 52-week trading range was $29.19 to $51.59. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.