MGM Resorts Says Shareholder Proposal is Seriously Flawed
LAS VEGAS (AP) — MGM Resorts International is urging shareholders of the casino-resort company to ignore an investment firm's proposal suggesting the company be converted into a real estate investment trust to boost stock value.
The company filed its definitive proxy statement with shareholders on Monday ahead of its May 28 annual meeting encouraging votes for MGM's incumbent board nominees and not for those nominated by investment firm Land and Buildings.
Land and Buildings is nominating four independent directors to the board and has suggested MGM convert itself into a real estate investment trust to increase shareholder value.
Land and Buildings owns fewer than 1 percent of the company's outstanding shares.
MGM says it had been and would continue evaluating a real estate investment trust structure. It called Land and Buildings' proposal seriously flawed.