MGM Reportedly Weighs Offer for People Inc. After Takeover Withdrawal
PPLI sits 33% above its 52-week low of $29.56 on elevated volume (3.1× avg).
Summary
People Inc. jumped 9% after-hours on a WSJ report that MGM Resorts is discussing making an offer for the company. This comes a day after People withdrew its own $48.30/share bid for MGM's remaining shares, which had sent MGM down 11%. MGM may be seeking to buy back a large chunk of its shares while acquiring other People assets at a discount. People holds a 27% stake in MGM, and CEO Barry Diller said the company remains open to strategic transactions. The reversal in deal direction is a major shift and could unlock significant value for People shareholders.
At the time of this announcement, PPLI was trading at $39.21 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $2.7B. 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 8 out of 10. Source: Seeking Alpha.