A definitive agreement has been signed for...

A definitive agreement has been signed for Warner Communications’ acquisition of Lorimar Telepictures in a swap of stock estimated to be worth more than $600 million. A preliminary agreement was announced May 10. Subject to approval by Lorimar stockholders and regulators, Warner will swap 0.415 share of its common stock for each Lorimar share. The final ratio is to be determined by taking the average closing price of Warner’s stock in 10 consecutive trading days ending three days before the sale is completed. Meanwhile, two shareholders have filed a class-action suit complaining that Lorimar management’s failure to obtain competing bids on the company has damaged them.