MGM's Special Committee Still Weighing Barry Diller's $48.30-a-Share Offer

MGM Resorts remains in play. The board's special committee of independent directors continues to evaluate People Inc.'s proposal to acquire all MGM shares it does not already own for $48.30 a share in cash, valuing the company at roughly $18 billion. People Inc., associated with Barry Diller, already holds 26.1% of MGM's outstanding stock and would own just over 50.1% of the equity under the proposal, with other investors holding minority interests.

The committee was formed specifically from directors with no affiliation to Diller, People Inc. or the transaction, and is working with independent outside advisers. People Inc. has said it expects to fund a deal through cash on hand at both companies plus additional debt and equity commitments.

The offer sits against a softer operating backdrop. MGM shares have fallen about 14% over three months on mixed Las Vegas demand and heavy development spending, and UBS trimmed its price target to $46 from $50 in early September. That leaves the bid above several sell-side targets, which is part of why the review is taking time.