Marvel Unit of New World Being Sought : Monza Says It Made Bid; ‘Not for Sale,’ CEO Says

A Los Angeles investment firm said it has offered to pay $75 million to $90 million to financially ailing New World Entertainment for its Marvel Entertainment subsidiary, the publisher of Marvel Comics and producer of TV animation shows.

The offer comes from Monza Capital Corp., a tiny firm formed last year to make investments and acquisitions, according to Lawrence D. Deneault Jr., Monza’s interim chief financial officer.

Contacted at home Sunday, New World Chief Executive Robert Rehme said he was unaware of the offer but insisted, “Marvel’s not for sale.”

The offer was conveyed in writing 11 days ago, Deneault said, but his firm was told that the timing is awkward because New World is in the midst of an exchange offer to their bondholders, which would enable New World to redeem bonds at 50 cents on the dollar.

Other Inquiries

Los Angeles-based New World posted a loss of nearly $18.5 million in 1987, and reported that its cash and marketable securities had plummeted to $33 million as of late March, down from $220 million at the end of 1986. The company launched its bond-swap effort in late April, in an effort to refinance the long-term debt that is costing the company about $31 million in annual interest payments.

Marvel contributed $2.3 million in operating income in 1987, in contrast to a $4.1-million operating loss in New World’s other core business: production and distribution of television series and low-budget movies.

Marvel was acquired in 1986 for about $46 million. Rehme said New World has received inquiries from other parties but co-chairmen Harry Evans Sloan and Lawrence L. Kuppin are equally determined not to sell Marvel.

Children’s Market

Deneault said his company cannot make a precise offer until it examines Marvel’s books. The financing would be arranged by the London investment firm of Henry Ansbacher Holdings Ltd., he said, while an Irvine-based investment banking firm in which he is a principal (Derrick, Slater and Deneault) will play a lesser role.

Deneault said his firm holds a stake in Monza, which he described as a penny stock firm trading over-the-counter. In an initial offering, Monza raised $450,000.

Monza bid for Marvel because it is convinced that the European market for children’s TV programming will boom, Deneault said. To that end, he said Monza recently acquired Toyco, a partnership that holds licenses to toy designs and other entertainment properties.