MGM Resorts and People Inc. end merger talks, agree voting cap
MGM CEO Bill Hornbuckle confirms merger discussions with People Inc. are over, as the companies unveil a voting agreement capping ownership.
Merger talks between MGM Resorts International and People Inc. are over, according to MGM CEO Bill Hornbuckle. “The discussion between MGM and People ends there. Management continues to be focused on the business as clear and consistent,” Hornbuckle said.
The announcement follows People Inc. dropping an $18 billion takeover bid of MGM last month amid deal complexities.
New voting agreement caps ownership
MGM and People Inc. unveiled a new voting agreement that caps People’s ownership of MGM equity at 29.9%. The accord also provides an avenue for People Inc. to approve a takeover of MGM by another party in the future, according to the companies.
People Inc. owns more than 26% of MGM’s shares outstanding, making it the largest MGM shareholder.
No reverse acquisition planned
Hornbuckle confirmed MGM will not pursue buying People Inc., stating the company is done with the dialogue of “you buy us, we’ll buy you.”
“Look, we are done, and I meant that we’re going to refocus on our business, the dialogue back and forth between us and people on, you buy us, we’ll buy you,” the CEO said.
Sources
- Casino.org News · Industry media · primary source ·
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