Europeans in on Proposals, Cannon Says

Cannon Group, the ailing Hollywood film producer, acknowledged Thursday that it is working with its major European stockholders on “various equity and management proposals” but said no final agreements have been reached.

The announcement comes a day after a public filing by Comfinance SA and its affiliates stating that they might try to obtain control of Cannon. They hold a 39.4% interest in the movie firm, which also operates theaters in Britain.

Amid rumors in recent months that Cannon Chairman Menahem Golan and President Yoram Globus might be on their way out, the new disclosures provide one of the few glimpses into the maneuvering behind the scenes. The flurry coincides with a deadline next Thursday for Cannon to file its 1987 financial results.

Cannon, whose brief announcement Thursday offered no details, said it was working on the “equity and management proposals” with Giancarlo Parretti. The statement noted that Parretti, a principal of Comfinance, is one of the co-chief executives of Cannon.

‘Termination Payments’

The proposals evidently could reduce or eliminate the share of control now jointly held by Golan and Globus with the Europeans, who bought into the loss-plagued firm last summer.

Comfinance, in a filing with the Securities and Exchange Commission, said it was discussing with Cannon “the possible purchase of additional equity in Cannon which may, if effected, give it a majority of the voting power of Cannon.”

Another document filed at the same time discloses that Golan and Globus would have “guaranteed termination payments” of $1 million each added to their employment agreements under a proposal to be considered at the annual meeting of Cannon stockholders.

Meanwhile, a Dec. 5 interim agreement also filed with the SEC shows that Golan and Globus--along with Chief Operating Officer Parretti and his colleague from the European group, Chief Financial Officer Frederic Scheer--all were made Cannon co-chief executives until the next stockholder meeting. No meeting date has been set.

The four officers also form the executive committee that appointed them to their positions. The pact provides that two members of the executive committee may transact official business, but one must be from the Parretti-Scheer faction and the other from the Golan-Globus faction.