People Inc shareholder HighSage backs MGM's possible takeover proposal

By Reuters News

Sept 29 (Reuters) - People Inc PPLI.O shareholder HighSage Ventures said on Tuesday it would support MGM Resorts' MGM.N 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.

  • Boston-based HighSage is People Inc's fourth-biggest shareholder with a 7.86% 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.

  • "The more we think about it, the more we are convinced that, at a fair price, this would be a good outcome for all parties."

  • People owns 27% of MGM's outstanding shares.

  • MGM and People did not immediately respond to Reuters requests for comment.

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