, Columnist
AMC Merger Pushback
Carmike's shareholders have a point, but can they stop the deal?
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The No. 1 priority for a public company is to act in the best interest of its owners. But what happens when the board and shareholders disagree on what that means?
This is the pickle Carmike Cinemas is in. The movie theater chain, located in mostly small cities and towns, thinks it's found itself a great deal: AMC Entertainment, a larger, deeper-pocketed rival with the backing of a Chinese billionaire, has agreed to acquire Carmike for $30 a share in cash, a total value of about $1.1 billion. But some investors -- including Carmike's largest -- think their company is being sold too cheaply. And even if these investors are right, their options are limited.