P.M. BRIEFING : Cineplex Odeon Bid Falls Short

Two Cineplex Odeon Corp. executives failed to secure financing for their nearly $650-million bid for the troubled movie-house chain, the company’s special committee said today.

Sandra Kolber, speaking for the committee of Cineplex directors, issued a statement saying a management team led by Chairman Garth Drabinsky was “unable to finance an all-cash takeover bid for all of the shares of Cineplex at a price of $13.61 a share.”

Drabinsky and Vice Chairman Myron Gottlieb had until the close of business Wednesday to secure financing for the offer.

Analysts said a major restructuring would likely follow, including a sale of assets and removal of management, including Drabinsky and Gottlieb, who signed lucrative “golden parachute” contracts in May.