MGM Resorts amends voting agreement after People Inc withdraws takeover proposal
PPLI•MGM Resorts amended its voting agreement with People Inc after the investor withdrew its more than $18 billion proposal to acquire the casino operator. The agreement caps the group’s combined MGM ownership at 29.9% and requires its votes to follow board recommendations in certain sale or change-of-control transactions.
1. Voting agreement changes
MGM Resorts said it amended its existing voting agreement with People Inc, Barry Diller and related entities after People withdrew its proposal to acquire MGM in September. Under the amended pact, the group must vote its MGM shares in line with the board’s recommendations in a sale or change-of-control transaction, subject to certain conditions, and its combined ownership is capped at 29.9%.
2. No transaction planned
MGM agreed not to adopt defensive measures targeting People and its affiliates while they comply with the agreement. MGM Chairman Paul Salem said the pact gives the company flexibility to pursue share repurchases and, if appropriate, a change-of-control transaction in line with its fiduciary duties. MGM said the agreement does not commit either party to a transaction and that no deal is currently being considered.
