HighSage backs MGM possible bid for People Inc; holds 7.86%
HighSage Ventures said it will support MGM Resorts’ potential offer to take People Inc private, saying a deal would be a “win-win” and noting its 7.86% stake.
Sept 29 (Reuters) — People Inc shareholder HighSage Ventures said on Tuesday it would support MGM Resorts' potential offer to take the magazine publisher private, adding that coming to terms on such a deal would be a "win-win". The Wall Street Journal reported last week that MGM was discussing making a bid to purchase Barry Diller's People Inc, a day after People Inc withdrew its proposal to buy the casino operator. Here are the details. 86% stake.
HighSage said in a letter to Diller and MGM chair Paul Salem that MGM's acquisition of People would allow it to purchase its own shares — owned by the media baron's firm — in a compelling manner. A sale to MGM will unlock a holding-company discount that has weighed on People's shares for too long, the investment firm argued. "By acquiring PPLI, MGM effectively repurchases its own shares at or below the current market price, given PPLI's large discount to net asset value," HighSage said. " People owns 27% of MGM's outstanding shares.
MGM and People did not immediately respond to Reuters requests for comment. com; Mobile: +91 9591011727;)