Lorimar, the entertainment and communications conglomerate that has been aggressively expanding for two years, said today that it has agreed in principle to merge with Telepictures Corp., another entertainment concern.
The stock-swap deal is valued at about $306 million.
Spokesmen for the companies declined to elaborate on their brief announcement and said no additional details will be available until after the companies' boards meet Tuesday.
Peter Temple of Telepictures said today's release was made only because of speculation that touched off heavy trading in the stocks beginning Friday.
By midday today, Lorimar's stock, traded on the American exchange, rose about $2 per share above its Friday close of $31.62 1/2. Telepictures, traded over the counter, dropped about $2 from its Friday close of $18.12 1/2.
Creator of TV Hits
Culver City-based Lorimar is creator of hit TV series such as "Dallas," "Falcon Crest" and "Knot's Landing."
New York-based Telepictures distributes TV shows such as "People's Court," "Love Connection" and "The All New Let's Make a Deal." Telepictures also is a partner with Rolling Stone in publishing US magazine.
Under the merger plan, holders of Lorimar's 7.67 million shares will receive 2.2 shares of Telepictures for each Lorimar common share they own.
Merv Adelson, Lorimar's chairman and chief executive, would hold those same positions in the combined company, which would be based in Culver City.
An office of the president would be created for the new company comprised of Lorimar President Lee Rich, and three Telepictures executives--Chairman and chief executive David E. Salzman, President and chief operating officer Michael Garin and Executive Vice President Richard Robertson.