Parretti’s Reported Remarks Outrage Movie Executives

Anti-Semitic remarks attributed to Italian entertainment executive Giancarlo Parretti generated alarm in Hollywood on Friday, and several top film executives said Parretti’s bid to buy MGM/UA Communications Co. will be endangered if he fails to explain himself.

“He’s going to have a real hard time now,” said one executive who asked not to be named. “This is the one thing, that, if it’s proven true, can derail the entire deal. This is a very liberal community, and I don’t think people are going to be happy about working with someone with that attitude.”

But Time Warner Inc. Co-Chairman Steven J. Ross, whose firm is providing financing for the MGM/UA deal, rose to Parretti’s defense.

Parretti, the co-founder of Pathe Communications Co., was quoted as saying, “Jews have ganged up on me” in a recent interview with the Italian newspaper, L’Unita. He also reportedly charged that Jews control the media. Parretti has denied making those statements in the past, but on Friday he refused to discuss the controversial remarks with The Times.

Parretti is being closely watched in Hollywood these days as he attempts a buyout of MGM/UA for $1.2 billion. His chances of pulling the deal off were seen as remote until last Monday, when Time Warner offered to put up more than half the purchase price in return for the worldwide distribution rights to the United Artists film library and future MGM/UA and Pathe releases.

Ross on Friday defended Parretti, saying the embattled executive “has never exhibited any prejudice.” Ross, who released a prepared statement to The Times through his son, pointed out that Time Warner’s business deal is with a public corporation (Pathe), not Parretti personally. He also questioned the motives of Parretti’s critics.

“I would think that if studio people are quoted and they’re not disclosing who they are, that in itself must mean something, especially since most major studios with the possible exception of Fox, have contacted Mr. Parretti and/or Warner Bros. to negotiate a deal of their own,” Ross said.

Still, many leading film figures questioned how Ross, who is extremely active in Jewish and Israeli affairs, can continue doing business with Parretti under the current circumstances.

They said Parretti will be treated as an outcast in entertainment circles if the remarks attributed to him are not thoroughly and convincingly refuted. Besides being offensive, the statements are factually in error, they said, noting that studios such as Columbia Pictures Entertainment are owned by such non-Jewish owners as the Japanese.

Parretti’s alleged statements also drew fire from the national office of the Anti-Defamation League on Friday. Chairman Burton S. Levinson called on the Hollywood community to “forcefully reject the anti-Semitic stereotyping and bigotry” detailed in the story.

The alleged remarks were made public in the United States by Business Week magazine. Editor-in-chief Stephen Shepard said his staff spoke to the reporter who interviewed Parretti and personally viewed the videotape of an Italian television show in which Parretti made similar, though less inflammatory statements.

Jeff Berg, chief executive of International Creative Management talent agency and an acquaintance of Parretti’s, said he hopes the film executive can clear himself. “If it’s true, it’s highly unfortunate because it plays into every historical stereotype in anti-Semitic thought,” Berg said. “I can only hope Giancarlo did not say what was reported.”

Most others declined to be identified for this story. But the reaction of one, who said, “My eyes nearly popped out of my head,” when he read the story, was fairly typical.

“If it’s true, it’s horrible,” said a major industry executive. “I would suspect that the number of people who would want to do business with him would be limited. As an anti-Semite, I don’t see how he could even function in this town.”

Added another longtime member of Hollywood’s creative community: “It’s one thing to note that many prominent figures in all aspects of Hollywood are Jewish and always have been. It’s quite another, however, to make hostile statements based on that fact.”

One Hollywood executive who is in partnership with Parretti, and who also happens to be an Israeli-born Jew, jumped to the embattled businessman’s defense. Yoram Globus, co-president of Pathe, said Parretti is one of the most loving and generous people in Hollywood. Globus also claimed that Parretti has made generous donations to Israeli and Jewish causes over the years.

“Do you think I would have worked with him?” he asked. “It’s ridiculous that the media are trying to take the blood out of the man. There is not even an inch of anti-Semitism.”

MGM/UA, the object of Parretti’s desire, released its second quarter financial statement Friday and the company continued to report sizeable losses, which reflected interest expense and the studio’s continued hard luck at the box office.

For the fiscal quarter ended Feb. 28, MGM/UA reported operating income of $10.3 million on total operating revenue of $176.8 million, compared to operating income in the same period last year of $10.1 million on total revenue of $241.8 million. The company managed to reduce its net loss from $14.7 million to $9.8 million.