LOS ANGELES, Nov. 19 (UPI) -- The AMC Entertainment Corp., the second-largest U.S. theater chain, and the Loews Cineplex Entertainment Corp. have reportedly started merger talks.
Daily Variety and the Hollywood Reporter reported Wednesday the negotiations are aimed at reaching a tentative agreement by the end of the year.
Variety said a merger of the No. 1 and No. 5 U.S. movie exhibitors would create a circuit of more than 5,600 screens, slightly fewer than the 6,100-plus screens owned by the Regal Cinemas Corp., the world's largest theater chain, but with a larger big-market base.
Variety said it was unclear whether a merger would involve AMC's acquiring Loews or a transaction in which Loews' current owner, the New York-based Onex Corp., maintained an equity position
AMC, based in Kansas City, Mo., operates 3,507 screens.
The Hollywood Reporter noted if a merger is reached, the combined AMC-Loews would have about 15 percent of the domestic exhibition market, with AMC Chief Executive Peter Brown heading the combined entity.
