ISS For MGM, Against Land and Buildings

Keeping things balanced, ISS is for MGM. Recall that Glass Lewis came out in support of activist Land & Buildings. ISS wants MGM shareholders to vote the WHITE proxy card FOR the re-election of all eleven of MGM's director nominees. Things are heating up here, we'll likely give this story another pass as part of Activist Strategy service before the shareholder meeting later this month.

ISS notes: 

  • "As the dissident has not made a compelling case that change at the board level is warranted, votes on the management card for all management nominees are warranted."
  • "This does not appear to be a board dismissive of emerging, and sometimes competing, strategic alternatives."
  • "It is also significant that the company continues to invest in the future – including expanding domestically, with the National Harbor and Springfield projects, as well as internationally – but makes no all-in bet on a single project. Even a major project like MGM Cotai represents less than 15% of enterprise value."
  • "On the REIT issue out of which this contest appears to have sprung, there is […] little evidence indicating the board is unduly resistant to the strategy, or unlikely to take appropriate action if it can enhance shareholder value."