UA Agrees to Buy Stock of Weintraub to Settle Dispute

United Artists and its deposed chairman, Jerry Weintraub, have “amicably resolved all outstanding issues” with a deal for the studio to buy his 2.5 million UA shares, currently worth about $35 million. The two sides have been negotiating a settlement since Weintraub’s departure April 14.

Gerald Parsky, Weintraub’s attorney, said “specific terms of the agreement are confidential, and they will be kept confidential. Basically, United Artists has a call, and Jerry Weintraub has a put, in respect to his United Artists’ stock.”

Both sides refused to reveal how much United Artists may pay for Weintraub’s shares in the option deal. The stock is currently selling for about $14 a share. The deal permits Weintraub, within a specific time period, to sell his stock to UA at a set price. Conversely, it would also permit, in that same time period, UA to buy the stock--and Weintraub to automatically comply.

Those familiar with the agreement agreed that the total value and terms would likely be revealed eventually in filings with the Securities and Exchange Commission.

Weintraub received 2.5 million shares, or 6%, after he was designated by UA’s majority stockholder, entrepreneur Kirk Kerkorian, as chairman of the newly forming United Artists in November, 1985. On basically no notice, Weintraub departed as president after five months in the job--just weeks after United Artists actually became independent from MGM/UA Entertainment. He was succeeded by Lee Rich, longtime president of Lorimar.

Since Weintraub’s departure from UA, the usually flamboyant executive has maintained a low profile, first departing for a vacation in the Caribbean, then spending most of his time at his Malibu home.

Both sides said that some of the projects developed by Weintraub while he was at UA would be “going with Jerry,” but they refused to elaborate. Where Weintraub will eventually land is still a matter of speculation. Close associates said that he was in New York last week, discussing financial backing for some future venture. Industry insiders said that his soon-to-be-released film from Columbia, “Karate Kid II,” could be the summer’s biggest box-office hit.