Tri-Star Ends Bid to Acquire Theater Chain : Had Offered $500 Million to UA Communications

Tri-Star Pictures said Friday that it has ended its ambitious $500-million bid to acquire the nation’s largest movie theater chain from United Artists Communications.

As reported, the deal appeared to be near collapse in early January, when UA Communications President Stewart Blair said no discussions had taken place for 60 to 90 days.

UA Communications now intends to keep the theaters, according to a prepared statement issued by Blair, who took the helm just two months ago after Tele-Communications acquired 55% of the company and more recently, raised its stake to 64.4%.

Could Stir Concern

Tele-Communications’ decision to retain the theater chain could stir concern in Hollywood, where some executives say Tele-Communications is positioning itself for greater bargaining power when buying movies or other programming for its cable TV systems. Denver-based Tele-Communications is the nation’s largest cable TV operator.

Tele-Communications agreed last July that if it succeeded in acquiring 80% of UA Communications, it would sell the movie theater chain to Tri-Star. Tele-Communications’ failure to acquire that stake was not cited as a reason for the deal’s collapse, however.

Chairman’s Statement

In a prepared statement, Tri-Star Pictures Chairman Victor A. Kaufman suggested that his company has changed its strategy since its December purchase of Loews Theatre Management for $300 million. Loews, which operates some of the most prestigious Manhattan theaters, could be the base for “acquisitions targeted to specific markets,” Kaufman said.

As reported, Tri-Star recently discussed the possibility of acquiring The Cannon Group’s Commonwealth Theatres unit, a chain active in Denver, Kansas City, Oklahoma City and Albuquerque.

Neither Kaufman nor Blair could be reached for comment.