P.M. BRIEFING : MGM/UA Tells $1.20-Billion Buyout Offer From Unidentified Company

MGM/UA Communications Co. said today that it has received a new buyout offer, worth an estimated $1.20 billion, from an unidentified New York Stock Exchange-listed company, topping an earlier $1.05-billion deal with Australia’s Qintex Ltd.

The successor to the United Artists and Metro Goldwyn Mayer Hollywood studios, MGM/UA struck gold with its Oscar-winning “Rainman” last year but has had a spotty financial record in recent years.

Under the new offer, all common stock owned by principal shareholder Kirk Kerkorian’s Tracinda Corp. would be acquired for $23.16 each, subject to adjustment.

Later, remaining shares would be acquired for the same price plus interest, at a total of about $1.20 billion.

Speculation centered on a handful of Big Board companies as possible purchasers, including Paramount Communications Inc., Walt Disney Co., News Corp. Ltd. and Sony Corp.

Topping the list was Paramount, which failed in its bid to break up the Time-Warner merger and acquire Time Inc. in a $12.2-billion buyout offer. The maneuver was widely viewed as a takeover protection, and since then Paramount has been rumored to be looking for another acquisition.