Live Entertainment May Sell Parts of Subsidiary

Live Entertainment Inc., a Van Nuys home-video company, said it is negotiating the sale of some of the assests of Live’s wholly owned subsidiary Lieberman Enterprises Inc. to Handleman Co. for undisclosed terms.

Lieberman, based in Minneapolis, distributes videos, recorded music and computer software, and provides merchandising services to many of its retail customers. Live said the negotiations with Handleman do not include parts of Lieberman’s wholly owned subsidiary Navarre, a personal computer and entertainment software distributor.

Handleman, based in Troy, Mich., sells videos, recorded music, books and computer software. Its annual sales are about $735 million.

Separately, an investment firm is seeking an injunction to stop the proposed sale of Live to Carolco Pictures Inc., a Los Angeles movie production company that owns about 54% of Live. Carolco and Live announced last week that they were discussing a possible merger under terms that had yet to be determined.

In a court complaint filed in Los Angeles, the investment firm, Lepow Equities Corp., said the proposed merger would give Carolco preferential treatment over other shareholders.