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Kerkorian group said to offer $1.3B for MGM
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July 13, 1996: 11:47 p.m. ET
News Corp., Polygram reportedly make rival bids
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NEW YORK (CNNfn) -- Kirk Kerkorian is reportedly among a group of executives that have launched a $1.3 billion bid for Metro-Goldwyn-Mayer Inc.
The New York Times on Saturday quoted MGM Chairman Frank Mancuso as saying that he and his management team had joined forces with Kerkorian and Australia's Seven TV Network to seek control of the studio.
The team is offering about $1.3 billion for MGM, the newspaper said.
French bank Credit Lyonnais S.A. acquired MGM in 1992 after the studio's previous owner, Giancarlo Parretti's Pathe Communications, defaulted on its loans.
However, U.S. banking laws now require Credit Lyonnais to sell MGM.
Lazard Freres & Co. is handling the sale, with a deadline of bids expiring earlier this week.
In addition to Kerkorian's group, other bidders reportedly Rupert Murdoch's News Corp., Morgan Creek Productions and Philips Electronics' Polygram unit.
Kerkorian's bid represents the latest in a series of involvements the billionaire investor has had with MGM.
He began buying MGM stock in 1969, winning control of the company and United Artists in 1981.
Kerkorian later sold MGM/UA Communications to Turner Broadcasting Inc. in 1986 for $1.5 billion. Turner then sold all MGM/UA assets except the film library back to Kerkorian several months later.
In 1990, Kerkorian then sold the remainder of MGM/UA to Pathe Communications for $1.3 billion, although he still controls Las Vegas' MGM Grand hotel. 
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