Company Town : PolyGram Scraps Offer for Goldwyn

The future of financially ailing Samuel Goldwyn Co. was thrown into confusion late Monday when the European entertainment giant PolyGram withdrew a $62-million offer for the company’s library of films and TV shows, sources said.

Sources said PolyGram executives decided to call off the deal after becoming exasperated by continuing delays in getting a definitive agreement signed. They were scheduled to send a formal letter to Goldwyn on Monday night. The decision came after a Jan. 22 deadline to sign a definitive agreement was missed.

Goldwyn executives could not be reached for comment.

Goldwyn still has a possible suitor in billionaire John Kluge’s Metromedia International.

Immediately after PolyGram and Goldwyn announced their tentative deal for the library in December, Metromedia issued a statement saying that it would pay $115 million for all of Goldwyn. At the time, Metromedia said it would pay $42.45 million in cash or shares, while assuming Goldwyn’s $72.9 million in debt.

Goldwyn has only said that it would consider the Metromedia bid, but has not announced any decision by its directors on what it would do.

Goldwyn is best known for sophisticated “art house” films as well as its Landmark chain of theaters, which includes the Nuart in West Los Angeles, the Port in Corona del Mar and the Rialto in South Pasadena.

Goldwyn has suffered from a box-office drought, although its “Angels & Insects” had a strong debut. Last year’s “The Perez Family” was a big flop.

In addition, its bank debt is about $70 million and its lenders--which include Bank of America, Great Britain’s National Westminster Bank and Japan’s Yasuda Trust & Banking--are said to be growing restless.

The Goldwyn library includes such films as “The Madness of King George,” “Much Ado About Nothing” and “sex, lies and videotape.” Its TV library includes “Flipper” and “American Gladiators.”

PolyGram also had negotiated to get a 20-year license to 75 movie titles, including such classics as “Wuthering Heights,” held by the estate of legendary Hollywood mogul Samuel Goldwyn, whose son, Samuel Goldwyn Jr., heads the company today.

PolyGram had viewed Goldwyn as a major stepping stone in its continuing efforts to build its film units and libraries.

But sources said PolyGram executives were increasingly irritated by a string of delays-- including the inability of Goldwyn execitoves to round up company directors for a vote--as well as continued requests for concessions.

“We’re tired of the whole thing,” a senior PolyGram executive said. “They either want this deal or not. We’re taking it off the table.”

PolyGram is controlled by Dutch electronics giant Philips.

Goldwyn shares rose 31.25 cents on Monday to $4.44 on the American Stock Exchange.