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(Sharecast News) - Shares in MGM Resorts International tumbled on Thursday after Barry Diller's People Incorporated withdrew its proposal to take the casino and resort operator private.
People Inc said late on Wednesday that it had abandoned its bid to acquire all MGM shares it did not already own, ending several months of negotiations with a special committee of MGM's board.
Chairman and senior executive Barry Diller said: "We didn't feel the mix was coming together in the way we had hoped and have decided not to pursue taking the company private at this time."
However, Diller said the group's confidence in MGM remained intact. People continues to hold 66.8m MGM shares, representing around 27% of the company, and said it had "total confidence" in management and MGM's prospects.
People, formerly known as IAC, had in June offered $48.30 per share in cash for the MGM stock it did not already own, implying an equity valuation of around $12bn.
The non-binding proposal represented a 24.1% premium to MGM's 30-day volume-weighted average price at the time and a 10.6% premium to its previous closing price.
MGM confirmed the withdrawal and said it would continue as a standalone company, pointing to its position in Las Vegas, regional properties and momentum at BetMGM.
MGM shares were down 9.1% at $34.42 in New York trading, having fallen as low as $33.71 earlier in the session.
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