People Inc shareholder HighSage backs MGM's possible takeover proposal
MGM•People Inc shareholder HighSage Ventures said it would support MGM Resorts' potential offer to take the magazine publisher private, calling a deal at a fair price a “win-win.” HighSage holds a 7.86% stake, and People owns 27% of MGM's outstanding shares.
1. HighSage supports potential deal
HighSage Ventures said it would support MGM Resorts' potential offer to take People Inc private. The Boston-based investment firm is People’s fourth-biggest shareholder, with a 7.86% stake.
2. Share ownership and rationale
In a letter to Barry Diller and MGM chair Paul Salem, HighSage said an acquisition could allow MGM to purchase shares it owns through Diller’s firm. HighSage argued that a sale could unlock a holding-company discount and said MGM would effectively repurchase its own shares at or below the current market price, given People’s discount to net asset value. People owns 27% of MGM’s outstanding shares.
