People Inc. takeover could trigger MGM China and Osaka stake sales: analysts.
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People Inc. takeover could trigger MGM China and Osaka stake sales: analysts. MGM Resorts International could eventually sell its 56 percent stake in MGM China and its interest in the MGM Osaka project in Japan if People Inc.'s proposed takeover of the US casino operator is completed, according to analyst reports following the non-binding offer. People Inc., formerly IAC, has proposed acquiring the MGM shares it does not already own for $48.30 per share in cash. The company is MGM's largest shareholder, with a 26.1 percent stake, and expects to own just over 50.1 percent of MGM after the transaction, with the remainder held by minority investors. Seaport Research Partners said the bid appears genuine but may be too low at the current price. MGM closed at $50.69 after the proposal, 4.9 percent above the offer, suggesting investors expect a higher price. Seaport said 'the bid price seems low' when considering MGM China, the Osaka project and MGM's 50 percent interest in BetMGM. CBRE Equity Research took a more constructive view on deal completion, saying it believes the take-private transaction 'will get done,' potentially at a 'slightly higher price' than the initial proposal. CBRE downgraded MGM to Hold and raised its price target to $50 from $49. MGM China's future becomes central. MGM China is likely to become one of the most closely watched assets if People Inc...
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