Nov 15, 2016 02:57 PM EST
AMC Gets Closer To Taking Over Carmike Cinemas
The Justice Department is the only thing standing in the way for AMC's cash and stock takeover of Carmike Cinemas, valued at $1.2 billion (including debt). AMC's prior March 2016 offer of $1.1 billion dollars was rejected as Carmike stockholders believed it undervalued the company. AMC made the final offer stating that if Carmike failed to accept it, AMC would not make another offer and instead, concentrate on AMC theaters and their recent Oden and UCI acquisition on Europe. Antitrust laws prevent the takeover/buyout without Government approval
AMC is prepared to sink hundreds of millions of dollars into Carmike theaters, upgrading existing theaters with IMAX and Dolby technologies. Nonetheless, some Carmike theaters are in rural areas and would not be able to sustain a price increase for tickets that may be required to sustain such improvements. AMC is not planning to change all the Carmike Theaters to AMC's- some of them will retains the Carmike name.
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