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New PolyGram bids sought
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October 5, 1998: 10:07 a.m. ET
Seagram wants a second round of bids after initial offers fall far short
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NEW YORK (CNNfn) - Seagram Inc., unsatisfied with initial offers, reportedly is asking bidders to resubmit their offers for PolyGram Filmed Entertainment.
The Wall Street Journal reported Monday that Seagram executives are prepared to fold all or part of PolyGram into its Universal Studios entertainment arm if the offers don't improve.
Seagram had hoped to get $1 billion for the film unit, but bids submitted last month came in far below that level.
Seagram has been trying to sell the troubled film company since it acquired its parent PolyGram NV in May.
Years of heavy spending with sparse returns left PolyGram burdened with liabilities, and the company's latest $85 million movie endeavor, "What Dreams May Come," has encountered less-than-enthusiastic reviews, adding to the company's woes.
So far, Seagram has received three bids for PolyGram.
France's Canal Plus SA and Artisan Entertainment Inc. have offered $400 million cash and assumption $300 million in debt. The Artisan group may rebid with the U.K.'s Carlton Communications PLC, according to the Journal.
Metro-Goldwyn-Mayer Inc. also submitted a bid, but for only the company's 1,500-film library.
Shares of Seagram [VO] were unchanged at 26-15/16 on the New York Stock Exchange Friday.
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Seagram
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