Carmike CinemasInc. investor Mittleman Brothers, which owns about 9.6% of the company'sstock, is threatening legal action if Carmike postpones the record date establishingeligibility for shareholders to vote on the company's planned sale to AMCEntertainment Holdings Inc.
The investor expressed alarm at rumors that the record date wasbeing delayed in an attemptby AMC to win over shareholders to vote in its favor.
Further, Mittleman Brothers argued that Carmike should be soldfor no less than $37.50 per share, higher than either the $30 per share offer thatAMC has officially proposed or the $33 per share that is reported to be considering. The investor pointed to AMC'sannounced of European theater chainOdeon & UCI Cinemas Group as evidence that its offer for Carmike was inadequate,saying AMC's Carmike offer represents an EV/EBITDA multiple of 7.9x post synergiesadjusted EBITDA versus a multiple of 9.0x for Odeon & UCI.
Currently, Carmike shareholders of record as of May 18 are scheduledto vote July 25 on whether to accept AMC's offer.