Stock Advances Following Buyout Report
MGM Resorts International (NYSE:MGM) shares gained 2.4% on Monday after a report published late Friday indicated the casino and hospitality operator is engaged in discussions with media entrepreneur Barry Diller over a possible acquisition.
Investor sentiment strengthened after markets reopened, with the report fuelling speculation over the company’s ownership structure.
Proposal Values MGM at Around $12.4 Billion
According to The Wall Street Journal, MGM has formed a special committee of its board and appointed advisers to review a proposal submitted by Diller on 1 June.
The offer reportedly seeks to acquire the remaining 26% of MGM Resorts that Diller does not already control at a price of $48.30 per share, valuing the company at approximately $12.4 billion.
Existing Shareholder Seeks Full Ownership
Diller’s People Inc. already owns a stake in MGM Resorts, whose portfolio includes major Las Vegas properties such as Bellagio and Mandalay Bay.
The report also stated that JPMorgan Chase & Co. is advising Diller on the potential transaction and helping arrange financing should the deal proceed.
Investors React to Potential Acquisition
The report emerged after Friday’s market close, prompting investors to respond when trading resumed on Monday.
Although discussions remain under evaluation, the possibility of a buyout provided support for MGM Resorts shares as the market assessed the potential premium implied by the proposed offer.
MGM Resorts International stock price
