J.P. Morgan Unit May Acquire AMC Chain

J.P. Morgan Partners, the private equity arm of J.P. Morgan Chase & Co., is close to an agreement to buy the AMC Entertainment Inc. theater chain in a deal valued at about $1.4 billion, sources close to the situation said.

Nearly every U.S. movie theater chain has filed for bankruptcy in the last decade, a result of aggressive building sprees that left them riddled with debt.

But the recovering sector has been a hotbed for acquisitions in recent months.

Shares of Kansas City, Mo.-based AMC rose $3.28 to $17.50 on the American Stock Exchange. J.P. Morgan Chase closed up 40 cents to $36.40 on the New York Stock Exchange.