Key facts
- People Inc withdrew its $18 billion takeover proposal for MGM Resorts.
- Amended voting agreement caps People Inc's ownership at 29.9%.
- People Inc must vote its MGM shares in line with the board's recommendations.
- MGM agreed not to adopt defensive measures targeting People Inc.
MGM Resorts International announced on Wednesday that it had amended its voting agreement with People Inc, an investment vehicle led by media mogul Barry Diller, following the withdrawal of People Inc's more than $18 billion proposal to acquire the casino operator. The investor had announced its intention to acquire MGM in September. The amended agreement stipulates that People Inc and its affiliates must vote their MGM shares in accordance with the board's recommendations for any sale or change-of-control transaction, subject to specific conditions. This pact also limits their combined ownership stake in MGM to 29.9%, preventing further share purchases beyond this threshold. MGM, in turn, has agreed not to implement defensive measures against People Inc as long as the terms of the agreement are met.