Report Says MGM/UA Has Put Sale Off for Now:

Jeffrey Barbakow, chairman of MGM/UA Communications Co., has told company executives that the proposed sale of the entertainment company has been put on hold, according to a published report.

The trade publication Variety, quoting unidentified sources, reported that Barbakow told an MGM executive meeting Wednesday that the sale is on hold for the time being. Mary Hardy, an MGM spokeswoman, declined comment on the report. “We’ll be holding our annual meeting on Jan. 9,” she said. “At that point, in his speech (Barbakow will) be making some comments as to what the future holds for MGM/UA that may give you some guidance.”

United Artists Entertainment Co. and Tele-Communications Inc. each said Wednesday that they had dropped their interest in a possible acquisition of MGM/UA.

The two Denver-based companies are cable television operators. United Artists Entertainment, which also operates movie theaters and is unrelated to MGM/UA, is 53% owned by Tele-Communications.

But in recent weeks, speculation about possible MGM buyers has focused on Turner Broadcasting System Inc., which in 1986 acquired the MGM film library. Turner has been reportedly considering a joint bid for MGM/UA with United Artists Entertainment and Tele-Comunications.

Turner has continually declined comment and declined to comment on the latest reports Friday.

Tele-Communications has 11.8% voting control of Turner and holds one seat on its 15-member board. United Artists Entertainment holds two seats on the Turner board.