People Inc withdraws offer to buy MGM Resorts — CNBC

People Inc., led by Barry Diller, has withdrawn its proposal to acquire MGM Resorts International. Following the announcement, shares of the casino operator fell 9% on Thursday, CNBC reports.

Share buyout proposal

In June, People Inc. offered to buy out MGM Resorts’ remaining publicly traded shares for $48.30 per share. The company already owns about 26.1% of MGM shares.

Diller explained the withdrawal of the proposal by the complexity of the deal. According to him, the components of such a proposal did not come together as the company had hoped, so it decided not to proceed with taking MGM Resorts private for now.

More current news is available on the UA.News Telegram channel Telegram.

Possible future options

At the same time, Diller said that People Inc. remains open to the possibility of a strategic deal with MGM Resorts and will consider various alternatives. According to CNBC correspondent David Faber, one factor behind the withdrawal was the significant debt burden that the deal could have caused.

Deal in the gambling sector

Earlier this week, Caesars Entertainment shareholders approved billionaire Tilman Fertitta’s proposal to acquire the company for $17.6 billion. Caesars shareholders are to receive $31 in cash per share.