AMC Boosts Buyout Bid For Carmike By 10%

AMC Entertainment Holdings Inc. announced Monday that it has raised its buyout bid for Carmike Cinemas Inc. by 10% to $33.06 a share in cash and stock. At Friday's closing price of $31.13 for Carmike's stock, the new bid for the movie theater chain represents a 6.2% premium, and values the deal at about $1.2 billion. Under terms of the new bid, AMC will pay 70% in cash and 30% in AMC shares. The original bid made on March 3 for $30 a share was all cash. "This latest agreement between AMC and Carmike is our best and final offer for Carmike," said AMC Chief Executive Adam Aron. "While we would like this transaction to go forward, we are fully prepared to focus instead only on the improving fortunes of AMC and on our Odeon & UCI acquisition in Europe if a majority of Carmike shareholders do not find this revised offer attractive." Carmike's stock, which was still inactive in premarket trade, has run up 36% year to date through Friday, while AMC shares have surged 28% and the S&P 500 has gained 6.4%.