MGM bidding goes to 2nd round

[khurramdar]

MGM bidding goes to 2nd round     
Written by Chris Forrester  
Wednesday, 20 January 2010 09:07
The sale of MGM is generating plenty of interest.

Evidently more than a half dozen bids were lodged last week, encouraging the company’s lawyers to go for a second round of bids. The cash raised needs to be good to help pay off some 150 assorted lenders to MGM which has about $3.7bn of debt handing around Leo’s furry neck.

However, early word is that the bids are a long way off that $3.7bn, and rumours suggest that this first round set are low-ball efforts nearer the $2bn mark.

Names in the frame include many of the usual suspects including Warners and Lionsgate. Fox is also said to be still interested but did not make a bid as it was still conducting due diligence.

With interest so robust â€" albeit at low prices as yet â€" the anticipated closing date for the incoming buyer to be in place of Jan 31 has now slipped to at best February.

© Rapid TV News 2010