Diller's voting agreement at MGM changed, opening the door to a takeover

MGM Resorts International and Barry Diller's company People Inc. have amended the voting agreement signed earlier this year. The new text makes it possible for media mogul Diller to vote in favor of another buyer's takeover bid for the casino operator.

The news comes a month after Diller's company withdrew its 18 billion dollar takeover offer for the company that runs the Bellagio. In the initial agreement reached in April, Diller and other related parties agreed to limit their voting rights in the casino company. Following People's offer, Diller had clearly stated that his company would not support any other third-party bid for MGM. The new agreement changes that position.

According to MGM's statement, People and Diller agreed to vote in line with the board's recommendation in a change of control transaction. The company also committed not to acquire additional shares if Diller's stake exceeds 29.9 percent. MGM said it will not take defensive measures as long as they comply with the agreement.

MGM said the new agreement does not require itself or People to enter into any transaction, and that no such transaction is currently planned. Diller had previously expressed interest in pursuing a "strategic transaction" with MGM in the future, but there has been no concrete development on this so far. The company's shares have lost 22.6 percent of their value since the beginning of the year.