MGM Resorts Signs Voting Deal Limiting People Inc.'s Stake

Dow Jones10-28 21:21

MGM Resorts International amended its voting agreement with People Inc., after the media company withdrew its proposal to acquire the casino and resort chain.

Under the agreement, People and its chair Barry Diller will vote all their MGM shares in accordance with the MGM board's recommendation in connection with a change-of-control transaction.

People and Diller have also agreed not to buy any additional MGM shares if doing so would result in their aggregate ownership exceeding 29.9% of the company's stock.

MGM also agreed not to take defensive measures or actions that might be adverse to People or Diller.

People is MGM's biggest shareholder and Diller is an MGM director. MGM Chair Paul Salem said the deal provided a clear path to share buybacks and a change-of-control transaction, if applicable.

The deal comes after People proposed to acquire MGM and then withdrew its bid. In September, MGM was discussing making an offer to acquire People, The Wall Street Journal reported.

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