Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, January 19, 1994 TAG: 9401190037
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: LON WAGNER STAFF WRITER
DATELINE: LENGTH: Medium
An employee at Salem Valley 8 said Tuesday that Carmike already is operating the two mall theaters, which have been units of General Cinema Cos.
Jay Shapiro, senior vice president of General Cinema in Chestnut Hill, Mass., confirmed Tuesday that negotiations are in progress between his company and Carmike that likely will involve transfer of leases and property.
Because both are publicly traded, federal securities law prohibits him from revealing details of any proposed transaction until it is complete, Shapiro said. He said the company expects to make an announcement Monday.
John Barwick, vice president of finance at Carmike, said he had no comment about a possible takeover of General Cinemas' Roanoke operation.
A takeover would make Carmike the operator with the largest number of screens by far in the Roanoke Valley. Carmike would have 17 movie screens with the addition of Tanglewood and Valley View cinemas.
Columbus, Ga.-based Carmike last week said it had bought a seven-screen theater in Williamsburg.
A Wall Street analyst familiar with the companies said she wouldn't be surprised by a Roanoke takeover, though she hadn't heard of one.
"It's possible," said Nandita Parker, an analyst with Gerard Klauer Mattison in New York. "Carmike is going to buy anything that's a small-town theater - and they have the money to do it."
General Cinema Cos. was formed in December as a spinoff from Harcourt General Inc.
Harcourt General was formed in March when General Cinema Corp., operator of the Neiman Marcus and Bergdorf Goodman department store chains as well as movie theaters, bought Harcourt Brace, a book publisher.
by CNB