Lorimar Cancels Sale of Metrocolor in Wake of U.S. Suit

Quickly reacting to a U.S. antitrust suit this week, Lorimar-Telepictures on Friday canceled its $72-million sale of Metrocolor to the Ronald O. Perelman firm that controls a major competitor in Hollywood film processing, Technicolor.

Los Angeles-based Lorimar-Telepictures announced termination of the deal by it and the intended purchaser, an entity of which MacAndrews & Forbes Group is a limited partner.

Lorimar-Telepictures had acquired Metrocolor about two months ago from Turner Broadcasting System, which had gotten it last March in its purchase of MGM/UA Entertainment. Entrepreneur Ted Turner kept the MGM film library and sold the famous MGM studio at Culver City and Metrocolor to Lorimar-Telepictures.

Stephen Ross, Lorimar-Telepictures senior vice president and general counsel, said Friday that his firm will continue to operate the lab “while we examine all of our options as to exactly what we will do with the property.” A spokeswoman indicated that other potential buyers were expected to surface.

A U.S. antitrust official said the Technicolor deal would have cut to two from three the number of major film processors in the movie industry. This would violate the Clayton Act by substantially lessening competition in the industry.