Unsolicited $48.30 Bid Matches 4.1% Upside, Spurs MGM Resorts Fiduciary Probe
MGM•People, Inc., controlled by board member Barry Diller, launched an unsolicited $48.30-per-share bid for MGM Resorts, valuing the company at $11.89 billion market cap. A Wells Fargo analyst’s new $48.30 price target matches the bid and prompted Bleichmar Fonti & Auld LLP to investigate potential breaches of Diller’s fiduciary duties.
1. Unsolicited Acquisition Offer
In early June, affiliate People, Inc., controlled by board member Barry Diller and already MGM Resorts’ largest shareholder, offered $48.30 per share for all remaining stock, valuing the company at an $11.89 billion market capitalization.
2. Wells Fargo Sets Matching Price Target
On July 7, a Wells Fargo analyst raised the price target for MGM Resorts to $48.30, implying a 4.1% upside from the prevailing share price and upgrading the rating to Equal Weight.
3. Fiduciary Duty Probe Underway
Following the matching bid and target, Bleichmar Fonti & Auld LLP launched an investigation into potential breaches of Barry Diller’s fiduciary duties due to his dual role as bidder and board member.
