A Second Carmike Shareholder Says AMC’s Offer Is Too Low

  • Driehaus slights $30 a share price, suggests $43.50 to $47.25
  • Joins investor Mittleman Brothers in opposing AMC deal

A second Carmike Cinemas Inc. investor said AMC Entertainment Holdings Inc.’s planned $1.1 billion takeover undervalues the movie theater company, putting more pressure on the merger partners to show the rationale behind the $30-a-share offer price.

“Despite the logic of the transaction, the value it creates does not appear to be shared equitably,” Driehaus Capital Management said Thursday in a statement. The Chicago-based investment firm, which hadn’t previously disclosed a stake in Carmike, said it owned 1.81 million shares, which would make it the largest shareholder with a 7.3 percent stake.

Carmike should be worth $43.50 to $47.25 per share, Driehaus said. The investment group joins Mittleman Brothers LLC, which has a 7.1 percent stake, in criticizing the offer price.

AMC Entertainment, the No. 2 U.S. exhibitor, announced a deal to buy No. 4 Carmike Cinemas on March 3. AMC is majority owned by Dalian Wanda Group, led by China’s richest man, Wang Jianlin.

Carmike’s board unanimously agreed AMC’s offer was the best choice for shareholders, the company said in a statement. When making its decision, the board of the Columbus, Georgia-based company had considered the interest level of other potential acquirers and Carmike’s potential value if it chose to remain a stand-alone company, a spokeswoman said.

Representatives from AMC didn’t respond to a request for comment.

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