Live Entertainment OKs Merger With Carolco

The board of directors of Live Entertainment Inc., a Van Nuys home video company, said it unanimously approved a proposed merger with Carolco Pictures Inc., a Los Angeles film production company that owns 53% of Live Entertainment.

Under the terms of the deal, Live Entertainment stockholders will receive shares of a new company formed by the merger--to be called Carolco Entertainment Inc.--worth between $14 and $20 for each Live Entertainment share. Carolco stockholders will receive one share of the new company for each share currently owned.

Live Entertainment said it expects a definitive agreement to be signed this week. The merger, which remains subject to votes by shareholders of both companies, is expected to be completed early next year.