October 15, 1990
MGM/UA, Pathe Sued Over 007 Films: Danjaq S.A. sued MGM/UA Communications Co. and Pathe Communications Corp. for allegedly violating a distribution contract involving 17 James Bond films on which Danjaq owns the copyrights. In the federal lawsuit, the Swiss company says it anticipates Pathe will be unable to make adequate payments on MGM stock when the two companies are expected to complete their merger this month.
October 18, 1990 |
Pathe Communications Co. stock rose 50 cents a share Wednesday to close at $3.75 as word spread among Wall Street analysts and traders that the company's planned merger with MGM/UA Communications Co. could occur as early as Friday. MGM/UA stock was up 25 cents a share to $14.25. The $1.3-billion deal is not scheduled to close until Tuesday, but sources close to the discussions said Pathe already may have lined up the financing needed to complete the deal.
April 4, 1990 |
Pathe Communications Chief Executive Giancarlo Parretti has been sentenced to 46 months in prison by a court in Naples, Italy, for fraudulent bankruptcy stemming from the collapse of a small chain of Italian newspapers in 1981. Parretti, who is currently trying to arrange financing for his proposed $1.2-billion bid to buy MGM/UA Communications Co., has already appealed the decision, and his chances of going to jail soon are extremely remote.
August 22, 1990 |
Giancarlo Parretti sank another $50 million into MGM/UA Communications Co. on Tuesday, clearing one more hurdle in his $1.3-billion bid for the film company. The payment raised Parretti's non-refundable deposit to $303 million, not counting about $75 million in securities that he has pledged in connection with the deal. Parretti, co-founder of Pathe Communications Corp., has about two more months to raise the remaining $1 billion.
February 2, 1990 |
Reversing a Los Angeles Superior Court decision against MGM/UA Communications Co., a California appeals court ruled that the studio may proceed to a trial in its suit challenging Walt Disney Co.'s right to use the MGM name on its studio tour in Florida and on other planned attractions. MGM/UA has argued that Disney, by building a working studio in Florida rather than simply an amusement park attraction, breached a 1985 agreement under which it had licensed the MGM name and logo.
May 8, 1990 |
The Jewish Defense League sued Pathe Communications Corp. Monday for allegedly issuing a false press release in which an unauthorized individual claimed to be speaking for the JDL when he denied that Pathe's president is anti-Semitic. The suit, filed in Superior Court, accuses Beverly Hills-based Pathe and Chaim Mizrahi, a Los Angeles resident, of misappropriating the JDL's name. Parretti denied the interview ever occurred and L'Unita was ordered by an Italian court to print his denial.
October 26, 1990 |
The producer of such films as "Last Tango in Paris" and "The Good, the Bad and the Ugly" claimed in a lawsuit that Pathe Communications Corp. will finance its pending acquisition of MGM/UA Communications Co. partly by selling television rights to MGM/UA films abroad for unusually frequent airings at cut-rate prices. The producer, Alberto Grimaldi, also claimed that Pathe's plan to sell various rights in 1,000 MGM/UA films to Turner Broadcasting System Inc. and Time Warner Inc.
July 17, 1990 |
Despite held breadth among skeptical observers, Pathe Communications Corp. on Monday made an additional $53-million down payment toward its planned purchase of MGM/UA Communications Co. If Pathe had not met Monday's deadline for the payment, it would have forfeited $200 million already placed in an escrow account as partial payment in the $1.3-billion bid for the movie studio.
June 19, 1990 |
Pathe Communications late Monday said it was "continuing discussions" about details of a plan under which Time Warner Inc. is to back Pathe's $1.2-billion bid for MGM/UA Communications Co., despite widespread reports that the talks had broken down. Beverly Hills-based Pathe also confirmed earlier reports that it might extend a June 23 deadline by which it was supposed to conclude its $20-a-share tender offer for MGM/UA. Pathe shares fell 50 cents to $3.
December 5, 1989 |
MGM/UA Communications Co. said Monday that it expects lower revenues from new movies over the next 18 to 24 months because it has scaled back motion picture development in anticipation of a sale of the company. The cutback began last March after MGM agreed to be acquired by Qintex Australia Ltd. and continued until a revised $1.5-billion agreement was terminated in October, MGM said in a filing with the Securities and Exchange Commission.