MI Developments Won't Buy Out Magna

MI Developments, which owns 59% of the equity in Magna Entertainment Corp., announced Thursday that it will not proceed with plans to take the racetrack conglomerate private by acquiring all outstanding shares.

Plans to privatize MEC, North America's leading owner and operator of racetracks based on revenue, had been announced July 13 by MI Developments. But the proposal faced a backlash from stockholders of both companies.

M. Douglas Young, who was appointed lead director of Mi Developments' board earlier this month, and William Sutton were appointed to a special committee to review plans for the MEC venture and other company transactions earlier this month.