The Los Angeles Times reported Saturday that the parent company had authorized a $75 million stock repurchasing plan and that it would issue a dividend of a "purchase right," effectively a purchase warrant that gave the owner the option to buy one one-thousandths of a share of a newly minted class share of preferred stock.
The initial price of the preferred stock is set at $110, the Times said.
The privately held company said it had no knowledge of any plan of a hostile takeover. The holding company said the plan is "designed to assure that each of the company's stockholders receives fair and equal treatment in the event of any proposed unsolicited takeover of the company, to guard against other abusive, coercive, manipulative and discriminatory takeover tactics, and to enhance the board's ability to negotiate with prospective acquirers."
"MGM's healthy balance sheet and efficient operating structure position the company for a wide array of options to maximize shareholder value," said Ann Mather, MGM's lead director, in a statement.
"The MGM Board is considering all of these options carefully, and has approved the share repurchase plan in recognition of the Company's strong performance to date and future prospects," Mather said.
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