Law Firm Investigates MGM Resorts' $48.30/Share Buyout Offer by People Inc. for Fiduciary Duty Breaches
MGM sits 69% above its 52-week low of $29.185.
Summary
A law firm is investigating People Inc.'s $48.30 per share offer to acquire MGM Resorts, citing potential breaches of fiduciary duty by Barry Diller due to conflicts of interest. Diller, who founded and controls People Inc., is also an MGM board member and People Inc. is MGM's largest shareholder. This investigation introduces legal risk and uncertainty to the proposed acquisition, which was initially announced on June 1st. The current market price of MGM is above the offer price, suggesting the market already has doubts or expects a higher bid.
At the time of this announcement, MGM was trading at $49.25 on NYSE in the Trade & Services sector, with a market capitalization of approximately $12.7B. 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 8 out of 10. Source: PR Newswire.