Surprise Suitor Wins Lampoon Bidding War

A bidding war for National Lampoon Inc. ended Thursday when the company agreed to be acquired by an investment group led by Los Angeles lawyer George A. Vandeman for $12.7 million.

Vandeman’s group, called NL Acquisition Corp., offered $7.25 for each of National Lampoon’s 1.6 million shares and $1 for each of its 500,000 warrants just before the company’s board of directors met to consider two earlier offers. The bid exceeded an $11.7-million bid from an investment group led by entertainment industry executive Mark E. Shanker and an $11.6-million bid from an investment group led by Anthony Cassara, president of the Wometco broadcasting firm.

Shanker and Cassara declined to comment Thursday.

The acquisition agreement ended three weeks of bidding for the New York company that publishes the National Lampoon humor magazine and has been involved in several films, including the 1978 blockbuster “Animal House.” National Lampoon, which had been looking for an investment partner to expand its film business, attracted several potential buyers after Vestron, a Stamford, Conn., distributor of videocassettes and films, offered to pay $6.4 million for the company. That offer was rejected Nov. 26.

National Lampoon’s fortunes have declined since its heyday during the 1970s, with falling circulation--from a 550,000 peak to about 380,000--contributing to four straight years of losses for the company. The company’s film business has also been spotty. Between the successful 1983 film “Vacation” and the 1985 sequel “European Vacation,” the company was involved in three films that didn’t generate any profits. Last year, National Lampoon lost $751,000 on sales of $8.4 million.

Vandeman, former general counsel of television station KTLA in Los Angeles, said in an interview that his group was especially interested in National Lampoon’s entertainment business. He said the group plans to invest about $20 million in the company initially to allow it to produce its own films. The company currently doesn’t produce any films.