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AMERICAN FINANCIAL CORP. AGREES TO SELL ITS SHARES OF SPELLING ENTERTAINMENT GROUP INC. TO BLOCKBUSTER ENTERTAINMENT CORP.

 CINCINNATI, March 8 /PRNewswire/ -- American Financial Corporation ("AFC") announced today that it has reached an agreement to sell all the shares that it beneficially owns of Spelling Entertainment Group Inc. (NYSE: SP) to Blockbuster Entertainment Corporation (NYSE: BV) in exchange for an aggregate of approximately 7.6 million shares of Blockbuster common stock and warrants to purchase an additional two million Blockbuster shares at $25 per share. The sale, which is subject to the receipt of certain customary regulatory approvals, is expected to close within the next several weeks. AFC beneficially owns approximately 24.5 million shares (48.2 percent) of the outstanding common stock of Spelling.
 Carl H. Lindner, chairman of the board and chief executive officer of AFC, stated, "We are delighted that Spelling will continue to work with someone with the ability and imagination to enable Spelling to maintain its status as one of the world's premier entertainment production and distribution companies."
 The transaction will allow AFC to maintain its investment in the entertainment industry through its ownership position in Blockbuster.
 Spelling is a leading distributor and producer of filmed entertainment. The Company distributes television programs and feature films worldwide for television, cable and home video exhibition and holds a library in excess of 12,000 hours. The company is also engaged in the development and production of television series, mini-series, movies for television and feature films. Current network programming includes "Beverly Hills, 90210" and "Melrose Place" on the Fox Broadcasting Network. Spelling also distributes theatrical motion pictures to various media in the international market, produces feature films financed and distributed primarily by other studios and licenses music and merchandising rights associated with its television properties.
 AFC is a Cincinnati-based holding company with financial subsidiaries engaged in property and casualty insurance, annuity programs and portfolio investing. In nonfinancial areas, subsidiaries are engaged in manufacturing, defense and energy activities. AFC also owns s?ignificant portion of the voting equity securities of several publicly owned companies.
 -0- 3/8/93
 /CONTACT: Sandra W. Heimann of American Financial Corporation, 513-579-2121/
 (SP BV)


CO: American Financial Corporation; Spelling Entertainment Group Inc.;
 Blockbuster Entertainment Corporation ST: Ohio IN: FIN ENT SU:


KK -- CL003 -- 3830 03/08/93 09:00 EST
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Publication:PR Newswire
Date:Mar 8, 1993
Words:368
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