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Byline: - Staff and Wire Services

Image receives buyout proposal

CHATSWORTH - Image Entertainment Inc. said Wednesday that it received an unsolicited buyout proposal from Lions Gate Entertainment.

In recent public filings, Lions Gate Entertainment stated it has acquired more than 4 million shares, or 18.98 percent, of Image Entertainment's stock.

Lions Gate's filings state that it ``believes that the acquisition of the company would be consistent with its desire to broaden and deepen its library of filmed entertainment, as well as to add an important musical component to its business,'' according to Image.

``Over the last several years we have implemented a series of corporate initiatives in order to increase the value of our company,'' said Image President and Chief Executive Officer Martin W. Greenwald. ``Management believes that the value of the company today and in the future is far greater than what is being offered.''

Image Entertainment's board has appointed a special committee, headed by Ira S. Epstein, to evaluate the proposal.

Taubman, Warner form partnership

BURBANK - Warner Bros. Consumer Products announced on Wednesday a partnership with Taubman Centers Inc. to launch Looney Tunes-theme children's play areas within Taubman shopping centers around the country.

Taubman owns and/or operates 22 shopping centers in 10 states.

``These days, going to the mall is no longer just about shopping,'' said Jordan Sollitto, a Warner Bros. Consumer Products executive. ``With this new entertainment concept, we are broadening the mall experience even further by bringing some of the world's most beloved characters to families in a fun, interactive and engaging way.''

New Xbox console ready for holidays

SEATTLE - The next version of Microsoft Corp.'s Xbox game console will be available in the United States two days before Thanksgiving, in time for the important holiday shopping season, the company said Wednesday.

The Nov. 22 launch of Xbox 360 in North America will be followed by a Dec. 2 launch in Europe and a Dec. 10 launch in Japan.

The releases will allow the Redmond, Wash.-based software maker to get a head start over rival Sony's PlayStation 3, which is slated to replace the market-leading PlayStation 2 next spring.

Katrina chipping away at economy

WASHINGTON - Hurricane Katrina is starting to eat into the economy, leading to concern that consumers will lose confidence and curtail spending.

The government reported Wednesday that retail sales plummeted last month, even before the storm hit, as high gasoline prices jolted consumers. Also, industrial output was nearly flat, reflecting widespread shutdowns of oil platforms, refineries and chemical plants along the battered Gulf Coast.

Analysts said they still believed Katrina will amount only to a temporary blow to the economy and that stronger growth will follow as rebuilding gets under way.

But they said the impact could turn out more severe if soaring energy prices cause consumers to cut back very sharply on spending elsewhere.

Industrial output posted a 0.1 percent gain in August. It would have been 0.4 percent, the Federal Reserve reported, if not for the shutdown of much energy and chemical production along the Gulf Coast at the end of August before Katrina struck.

Economists predicted that the fallout would continue as the energy industry struggles to regain its footing.