People Inc. said to be preparing $18bn bid for MGM Resorts, shares surge

(Sharecast News) - Shares of MGM Resorts surged on Monday following a report that Barry Diller's People Inc. is preparing a bid to buy the casino giant in a deal that would value the group at more than $18bn. According to CNBC's Andrew Ross Sorkin, the proposal has not yet been finalised, though the company is planning an offer of $48.30 per share in cash. MGM is behind major Las Vegas properties including Bellagio and Aria.

Billionaire media mogul Diller already sits on the board of MGM Resorts and would recuse himself from any board vote on a potential deal, CNBC said.

People Inc., formerly known as IAC, owns a stake of around 26.1% in MGM. CNBC said the bid could come as early as Monday.

Diller said in a statement to the Wall Street Journal: "We believe MGM's management team is superb, and that there is a compelling opportunity to support MGM's next phase of growth and help unlock its full value."

At 1425 BST, MGM shares were up 11.6% in pre-market trade at $48.72.