AMC ups ante in potential Carmike deal, purchases European theater chain

AMC Entertainment Holdings, Inc., on Tuesday stated for the second time in two weeks that its proposed $1.1 billion acquisition of Columbus-based Carmike Cinemas was at “considerable risk,” this time after acquiring Odeon & UCI Cinemas Group, the largest theater operator in Europe.

AMC said it was committed to moving forward with the Carmike deal,

“However, as per our statement two weeks back, some Carmike shareholders have an unrealistic view as to Carmike’s value to AMC, and their resulting price expectations are simply beyond what AMC believes is prudent to pay. We have said all along that AMC is a disciplined buyer, and that very much continues to be the case,” the Tuesday morning statement read.

The statement contained strong language as Carmike shareholders prepare this week to vote on the deal.

“Therefore, the likelihood of an AMC/Carmike transaction continues to be at considerable risk,” it stated.

Carmike’s shareholder meeting ended last month without a vote on the proposed sale. The meeting was rescheduled for Friday in Atlanta. Some Carmike shareholders filed suit in federal court claiming that the $30 per share stock price per share was under valued. U.S. District Court Judge Clay Land denied a motion trying to block the sale.

“We intend to continue to work this week with Carmike to see if the AMC/Carmike transaction can be saved, but we again note that the economics of a transaction get marginal very quickly for AMC above the $30 deal price,” said Adam Aron, AMC CEO and president. “Either way, so be it. AMC combined with Odeon & UCI, or AMC combined with Odeon & UCI along with Carmike, will be a terrific company.”

At 10 a.m., Carmike stock was down 28 cents on the news, trading at $29.46 per share. AMC was trading at $28.54 per share, up 57 cents.

This story was originally published July 12, 2016 at 10:01 AM with the headline "AMC ups ante in potential Carmike deal, purchases European theater chain."