MGM Resorts Shares Fall 11% After Barry Diller's People Inc. Withdraws Takeover Offer
The media company rescinded its bid to acquire the remaining public shares of MGM Resorts, sending the casino operator's stock lower.
Shares of MGM Resorts International fell 11% after Barry Diller's People Inc. rescinded its offer to buy the remaining publicly held shares of the casino and hospitality company, according to CNBC.
CNBC's report did not specify the terms of the original offer, the reasons People Inc. gave for withdrawing it, or the size of the stake People Inc. holds or previously sought in MGM Resorts.
Market reaction
The 11% decline reflects investor reaction to the loss of a potential acquisition premium that had been factored into MGM Resorts' share price. Takeover offers, and their withdrawal, typically move target companies' stock because investors adjust their expectations of a near-term buyout at a premium to the prevailing market price.
MGM Resorts operates casino and entertainment properties in Las Vegas and other markets. CNBC's report did not include a statement from MGM Resorts or from People Inc. explaining the decision to rescind the offer, nor did it specify whether People Inc. indicated any intention to revisit a bid in the future.
Sources
- MGM Resorts shares sink 11% after Barry Diller's People Inc. rescinds takeover offer — CNBC — Top News
EGazette summarizes reporting from multiple sources; follow the links for the originals.
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