KERKORIAN'S MGM OFFER MAKES WAVES.Byline: Greg Hernandez Staff Writer SANTA MONICA - Investor Kirk Kerkorian's tender offer to increase his stake in Metro-Goldwyn-Mayer Inc. by 15 million shares could be an indication of some major changes for the entertainment company, analysts said Thursday. Kerkorian and his investment firm, Tracinda Corp., offered $16 a share, well over Thursday's closing price of MGM MGM in full Metro-Goldwyn-Mayer, Inc. U.S. corporation and film studio. It was formed when the film distributor Marcus Loew, who bought Metro Pictures in 1920, merged it with the Goldwyn production company in 1924 and with Louis B. Mayer Pictures in 1925. shares of $14.90 on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . If exercised in full, the offer would amount to $240 million. ``This could be a prelude to (Kerkorian) taking the company private,'' said media analyst David Miller of Sanders, Morris, Harris in Los Angeles. Analyst Robert G. Routh also thinks the stock purchase could be just the tip of the iceberg tip of the iceberg n. pl. tips of the iceberg A small evident part or aspect of something largely hidden: afraid that these few reported cases of the disease might only be the tip of the iceberg. . ``If Kirk wants 15 million shares at $16 a share you have to ask why,'' said Routh, an analyst with Arnold and S. Bleichroeder in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . ``You have to believe there is more to come. The question is, What is to come? They could decide to go private, merge with Fox or Disney, or join the NBC NBC in full National Broadcasting Co. Major U.S. commercial broadcasting company. It was formed in 1926 by RCA Corp., General Electric Co. (GE), and Westinghouse and was the first U.S. company to operate a broadcast network. bid.'' Kerkorian and his firm currently hold 163.9 million shares of MGM, or 66.9 percent. MGM's board is not making a recommendation to shareholders on whether they should tender their shares, stating in filings that ``it is a personal investment decision based upon each shareholder's particular circumstances.'' MGM is in a solid financial position with its three summer feature film releases ``Legally Blonde 2,'' ``Jeepers jee·pers interj. Used to express surprise or annoyance. [Alteration of Jesus1.] Creepers'' and ``Uptown Girls'' all set to earn more than they cost to make and its home video and television businesses going strong. ``They have no debt,'' Routh said. ``They are way ahead of things operationally in terms of fundamentals.'' Greg Hernandez, (818) 713-3758 greg.hernandez(at)dailynews.com |
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