IWERKS EXPANSION REJECTED IN VOTE; SHAREHOLDERS SPURN SHOWSCAN ACQUISITION.Byline: Dave McNary Daily News Staff Writer Shareholders of Iwerks Entertainment Iwerks Entertainment was founded in 1985 by Stan Kinsey and Don Iwerks, two former Disney Executives, and became well known through 1996 as a leading developer of special venue and virtual reality theaters throughout the world. Inc. spurned spurn v. spurned, spurn·ing, spurns v.tr. 1. To reject disdainfully or contemptuously; scorn. See Synonyms at refuse1. 2. To kick at or tread on disdainfully. v. management's efforts Tuesday to expand, voting down a $19 million acquisition of troubled rival, Showscan Entertainment Inc. Iwerks, which lost $4 million on $14 million in sales during the six months that ended Dec. 31, said it was ``disappointed'' with the results but added it plans to stick with its growth strategy in its core operations of motion-simulation rides and giant-screen theaters. Chairman and Chief Executive Officer Charles Goldwater said in a statement, ``The tactics and timing of results may change as a result of this vote, but our mission - to firmly establish this company as a full-service provider of entertainment attractions - remains the same.'' The stock-swap deal had been opposed by analysts and a pair of major shareholders - Heartland Advisors, holder of 24.7 percent of Iwerks's stock and Providence Providence, city (1990 pop. 160,728), state capital and seat of Providence co., NE R.I., a port at the head of Providence Bay; founded by Roger Williams 1636, inc. as a city 1832. Capital. They argued that Iwerks, a maker of motion simulator A motion simulator or motion platform is a mechanism that encapsulates riders and creates the effect/feelings of being in a moving object. One example would be a theme park ride which simulates flying by using a projection screen in front of the seats you ride in. rides, was offering too much for Showscan, which produces films for giant-screen theaters, and that it had not spelled out how it will compete effectively with giant-screen leader Imax Corp. Iwerks decided in December to reduce the purchase price for Culver cul·ver n. A dove or pigeon. [Middle English, from Old English culufre, from Vulgar Latin *columbra, from Latin columbula, diminutive of columba, dove.] City-based Showscan, which lost $5.9 million in the nine months ended Dec. 31. Iwerks had contended the merger would boost cash flow and cut duplicative du·pli·cate adj. 1. Identically copied from an original. 2. Existing or growing in two corresponding parts; double. 3. costs. Burbank-based Iwerks did not announce the voting results to Wall Street until after the market closed. Iwerks shares rose -1/2 to 3-1/4 Tuesday. |
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