LORIMAR CHAIRMAN WEIGHS VENTURE : WARNER MAY PROVIDE MONEY TO START ENTERTAINMENT FIRM

Lorimar Telepictures Chairman Merv Adelson may go into the entertainment business for himself instead of playing second fiddle to Chairman Steven J. Ross of Warner Communications after that firm completes its acquisition of Lorimar.

What’s more, Warner may provide cash for Adelson’s venture.

A Lorimar spokesman confirmed Tuesday that Adelson is considering forming a company to acquire media and entertainment properties, and a Wall Street analyst said reports have circulated for some time that such an arrangement was in the works.

Since the $600-million-plus merger of the Culver City television producer into entertainment giant Warner was announced May 10, observers have been skeptical that Ross would significantly share his power with Adelson.

Considering Options Adelson led the building of Lorimar into a major TV force with network series from “Dallas” to “Alf,” but the company had to abandon an ambitious diversification plan in June, 1987, following severe losses on its theatrical movies and a scandal in its home video unit.

Adelson was reported to be out of the country this week, but a Lorimar spokesman in New York asserted Tuesday that both companies “anticipate” that Adelson will serve as a Warner director and vice chairman following the merger. The spokesman added:

“But Mr. Adelson is also considering other options for himself, such as the establishment of a fund to make select acquisitions.”

The spokesman said it would be “premature” to go beyond that description.

However, the Wall Street Journal quoted unidentified sources as saying that Warner and the investment banking firm Drexel Burnham Lambert might provide $100 million or more in financing for an Adelson company that would make media and entertainment acquisitions. The article also said people familiar with the situation expect Adelson to end up with $4.5 million from Warner in settlement of his Lorimar employment contract.

“We thought (such a deal) was expected,” said a securities analyst who follows Warner and Lorimar. “We heard early on that Steve Ross was going to give him seed money to start up some kind of entertainment company. As long as it involves a cash settlement and a legitimate new company for (Adelson) to run, it makes sense for him.”

Stockholders to Meet The possible switch in Adelson’s plans surfaced on the eve of New York-based Warner’s annual stockholder meeting, scheduled for today in Columbus, Ohio. A topic of potential controversy at the session is a recent lawsuit initiated by a Ross foe on the Warner board, Herbert J. Siegel.

The action seeks to delay the Warner-Lorimar wedding, expected to take place in September. Lorimar stockholders must approve the deal at a special shareholders meeting, which cannot be set until the Securities and Exchange Commission approves proxy materials.

Siegel, chairman of Chris-Craft Industries, Warner’s biggest stockholder, and Ross have pitted their strong wills against each other for four years, but Siegel has never been able to prevail as a minority dissenter in major disputes on Warner’s board.