Shares of MGM Resorts rose on Thursday after a report that activist hedge fund Starboard Value has built a stake in the company.
Two people familiar with the matter told Reuters that Jeff Smith’s New York-based firm is building a stake and that MGM Resorts is aware of the fund’s position. Starboard Value and MGM Resorts did not immediately respond to CNBC’s requests for comment.
MGM Resorts’s stock is down more than 16 percent over the past 12 months; rivals Las Vegas Sands, Wynn Resorts and Caesars Entertainment are down 18 percent, 30 percent and 39 percent over the same period.
Originally published at CNBC