Warner Reported Seeking Mann Stake

Gulf & Western, which acquired Los Angeles-based Mann Theatres of California just four months ago for $220 million, has been negotiating the sale of a 50% stake in the theater chain to Warner Communications Inc., industry sources said Wednesday.

A sale would be in keeping with published reports last fall that Gulf & Western was seeking a partner to operate theaters nationwide.

In addition to the 360-screen Mann chain--which includes the Chinese Theater in Hollywood, Gulf & Western acquired two other theater circuits last year: Festival Enterprises, a 91-screen Northern California chain, and Trans-Lux, with 24 screens in Connecticut and New York.

Gulf & Western owns Paramount Pictures, as well as the 460-screen Famous Players theater chain in Canada. Senior executives at Paramount and Warner Communications could not be reached for comment late Wednesday.