Stifel Says IAC Proposes to Acquire MGM at $48.30 per Share
Stifel noted that Barry Diller's People Inc. (IAC), formerly known as IAC, has proposed acquiring the remaining outstanding shares of MGM Resorts (MGM) it doesn't own for $48.30 per share in cash and taking the company private. The firm argues that this initial bid appears low, a view seemingly shared by investors with MGM trading above the offer price, though the firm also struggles to identify credible strategic acquirers that could come top the bid and believes private equity may be deterred by People's 26% voting rights and instead opt to get involved via the People offer. The firm, which previously said after Caesars (CZR) announced an agreement to be acquired by Fertitta Entertainment that it believed that deal signals MGM shares could be worth $50-$55 per share, thinks it is possible the board rejects the initial proposal and pushes for a higher premium. Stifel keeps a Buy rating on MGM shares.
