Major Shareholder HighSage Backs MGM's Possible Takeover of People Inc
PPLI sits 34% above its 52-week low of $29.56 on light trading volume (0.1× avg).
Summary
HighSage Ventures, People Inc's fourth-largest shareholder with a 7.86% stake, publicly endorsed MGM Resorts' potential takeover of the company. In a letter to Barry Diller and MGM chair Paul Salem, HighSage argued the deal would unlock a holding-company discount and allow MGM to effectively repurchase its own shares at or below market price, given People's 27% stake in MGM. This follows last week's WSJ report that MGM was discussing an offer, which sent People shares up 9% after-hours. The endorsement from a significant shareholder adds weight to the possibility of a deal and may pressure management to engage. Watch for any formal offer or response from People Inc or MGM.
At the time of this announcement, PPLI was trading at $39.47 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $2.9B. The 52-week trading range was $29.56 to $48.32. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.