Hollywood actors' dispute goes into the final reel

Talks aimed at preventing another Hollywood strike reached a nail-biting climax last night, after major studios made a "final offer" in their high-stakes pay negotiations with the Screen Actors Guild.

Hours before the deadline for an agreement expired, the Alliance of Motion Pictures and Television Producers (AMPTP) handed over a contract containing additional concessions worth more than $250m (£125m) in the next three years.

"Our final offer represents a final hope for avoiding further work stoppages and getting everyone back to work," said an AMPTP spokesman, saying film production has now "virtually shut down" because of uncertainty over a deal.

The guild requested a day to study the offer in detail but said it "does not appear to address some key issues". Although the existing pact between actors and their employers has now expired, both sides have agreed to honour its terms until talks are resolved.

Aftra, a rival union which has 70,000 members, struck a deal with studios last month – much to the disgust of the 120,000-member SAG, which mobilised Jack Nicholson, Josh Brolin and Holly Hunter to criticise the agreement.

In response, the Aftra supporters Tom Hanks, Kevin Spacey and Alec Baldwin have publicly criticised the SAG while George Clooney urged both sides to settle their differences.