|
Universal gets into the act
|
 |
July 4, 1997: 10:33 a.m. ET
Studio takes active role in Cineplex-Loews merger talks
|
NEW YORK (CNNfn) - Cineplex Odeon Corp.'s largest shareholder, Universal Studios Inc., is taking an active role in the theater chain's merger plans with Sony Corp.'s Loews Theaters.
"Universal is actively involved in the discussions regarding the possible merger," the Universal City, Calif.-based company said in a document filed late Thursday with the Securities and Exchange Commission.
Toronto-based Cineplex Odeon confirmed on June 20 that it was in discussions with Sony about a possible deal. Although no value was disclosed, investment bankers and analysts estimated fair value of Cineplex Odeon at $700 million.
The latest disclosure by Universal greatly strengthens the chances that a deal will be struck, given that any agreement must win approval from shareholders. Universal owns 73.4 million Cineplex shares, or 41.5 percent of the outstanding stock.
Cineplex Odeon has said the transaction is being structured for Sony Loews Theaters to be joined with Cineplex shareholders into a combined company.
Should a deal go forward, a combined Sony Loews-Cineplex Odeon entity would operate about 2,500 theater screens in the United States and Canada. Sony currently has 900 movie screens at 135 theaters across 14 states. Cineplex Odeon operates nearly 1,600 screens through more than 300 theaters in the United States and Canada.
Combining the two companies would create strong competition for Carmike Cinemas Inc., known as the "Wal-Mart of the theater industry" because it operates 500 theaters in small U.S. towns.
-- Robert Liu
|
|
|
|
|
 |
|
