AMC, Carmike theater chains to merge after AMC increases offer

COLUMBUS, Ga., July 25 (UPI) -- The takeover of Carmike Cinemas Inc. by AMC Entertainment Holdings Inc., after an improved offer by AMC, will form the largest movie theater chain in the United States.

AMC, owned by China's Dalian Wanda Group Co., offered to buy Carmike in March, but Carmike directors and stockholders balked at the sale price, twice postponing the agreement. A 10 percent increase in AMC's offer, to $1.2 billion -- $585 million in cash and $250 million in stock, plus debt -- received approval of the Carmike board and its urging that stockholders vote in favor of the agreement.

AMC is the second-largest movie theater chain in the United States, behind Regal Entertainment Group. Carmike is fourth, with most of its theaters in smaller towns and rural areas.

The deal comes weeks after Dalian Wanda announced it would purchase Odeon & UCI Cinemas Group, Europe's largest movie chain, for $650 million.