Final bids go in for MGM auction
Thursday 11 July 1996
Lazard Freres, which is handling the sale for the studio's current French owner, Credit Lyonnais, earlier this week asked the three bidders still remaining in the race to improve on their previous bids. Credit Lyonnais had been hoping to raise a minimum of $1.5bn-$2bn (pounds 970m-pounds 1.3bn).
The contest is believed to have been narrowed down toPolyGram, the music and film unit of Philips, Rupert Murdoch's News Corporation, and Los Angeles-based Morgan Creek Productions. Analysts did not expect any of them to increase their bids as high as $1.5bn, however.
The auction is being complicated by a contract now in place between MGM and Warner Bros that gives Warner Bros the right to distribute all MGM home videos. Warner Bros has reportedly indicated that it would seek to hold the new owners of MGM to the contract, implying that they too would have to distribute through the studio until the agreement expires in 2003.
Both PolyGram and News Corp are believed to have included in their bids requests for indemnifications against the Warner Bros contract. It is not an issue for Morgan Creek, however, because its films are already distributed by Warner Bros.
Morgan Creek was thought to be more likely than the other two to respond to the plea for an improved bid. Days ago it secured $1bn in financing from Chase Manhattan Bank and may be in a position to go to around $1.4bn. It was thought likely that both News Corp and PolyGram would stick close to their original offers of closer to $1.1bn.
Easter egg hunt horror as mother finds dead body under deck of house
Missing Malaysia Airlines Flight MH370: Wreckage could be found within a week as search reaches 'very critical juncture', says minister
South Korea ferry disaster: Released transcripts show chaos and confusion in the moments before ferry sinks
Unbeliebable: The White House offer 'no comment' to anti-Justin Bieber petition
Loch Ness Monster found on Apple Maps?
The food poverty scandal that shames Britain: Nearly 1m people rely on handouts to eat – and benefit reforms may be to blame
Scottish independence: It is the English who should be on their knees, begging the Scots to vote ‘No’
Nigel Farage fatigue? Half of voters ‘immune’ to Ukip’s appeal
'Sinful': Video of British Muslims dancing to Pharrell Williams's hit Happy comes under attack
Nigel Farage: I’m taking on the status quo, and the Establishment’s fighting back
Refugee facing deportation from Sweden saved by fellow passengers refusing to let plane leave
- 1 Easter egg hunt horror as mother finds dead body under deck of house
- 2 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 3 Unbeliebable: The White House offer 'no comment' to anti-Justin Bieber petition
- 4 Loch Ness Monster found on Apple Maps?
- 5 How We Met: Alison Moyet & Emma Kennedy: 'I knew we'd be friends because she was happy to make a prat of herself'
iJobs Money & Business
Negotiable: Harrington Starr: Database Team Lead ( Leadership, Sybase, Compute...
£40000 - £50000 per annum + Bonus+Benefits+Package: Harrington Starr: C#.NET D...
£25000 - £35000 per annum + Bonus+Benefits+Package: Harrington Starr: VB.NET S...
£45000 - £55000 per annum + Bonus and Benefits: Harrington Starr: Trade Suppor...