MGM Forms Special Committee as People Inc. Buyout Talks Intensify
MGM sits 61% above its 52-week low of $29.185 on light trading volume (0.2× avg).
Summary
MGM Resorts has formed a special committee and hired advisers to evaluate People Inc.'s $48.30 per share buyout offer, with talks intensifying this month. The offer, first made on June 1, values the company at about $12.4 billion. Shares rose 1.5% to $47.59 on Monday, reflecting optimism that a deal may materialize. This follows a wave of casino M&A, including Caesars' agreement to be acquired in late May. The special committee formation signals the board is taking the bid seriously, moving the process beyond initial speculation.
At the time of this announcement, MGM was trading at $47.10 on NYSE in the Trade & Services sector, with a market capitalization of approximately $12B. The 52-week trading range was $29.19 to $51.59. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.