MGM restricts People Inc voting power after takeover bid withdrawn

MGM Resorts amended its voting agreement with People Inc., Barry Diller and their affiliates after People withdrew its roughly $18 billion takeover proposal in September. The group, which owns about 27% of MGM, is barred from buying shares that would take its stake above 29.9%, with an exception if MGM’s own repurchases push it over that level. For ordinary shareholder votes, shares held by the group above 25.73% of MGM’s voting power must generally be voted with the majority of other shareholders; on a change-of-control deal, the group must vote in line with MGM’s board recommendation, subject to conditions. MGM agreed not to take defensive action against People as long as the group complies with the pact. The agreement does not require either side to pursue a transaction, and MGM says it remains focused on its operating strategy and shareholder value.