Independent Exhibitors Film Bulletin (1956)

Whf They're Talking Abort □ □ □ In the Movie Business □ □ □ )OES LOEWS STILL FACE A FIGHT? This is the londerous question puzzling financial circles hard on the ve of the company's annual meeting. Despite hectic ■eace-pipe smoking late last wek among management and cportedly dissident elements, informed opinion runs equal/ divided. Some antipathy seems assured, and this leads 0 the next question : If opposition does develop, how cugh and tough will it be? This corporate tinder-box has been snapping and crackllg like dry twigs in a prairie campfire in recent weeks. Vhether it will flare into wholesale conflgration or sputter jut, now appears to depend on two key imponderables : 1) The influence of Harold Stein's peace treaty with Arlur M. Loew upon other dissident groups. 2) Unity among the remaining "buccaneer" segments. Should management escape unbloodied come February 3, major credit must redound to the skilled diplomacy of Ir. Loew, who has apparently won the confidence of the ssidents. Stein, for instance, told Film BULLETIN he as "great faith" in him. Evidently, Loew has agreebly iet stockholder demands to follow through with construcve action, not lip service, to institute corrections in oew's, Inc. operations so that it can meet competitive mditions and regain its once proud status as the industry ader. Cuts in the huge studio overhead charges are a regone conclusion. 0 Until the time Dreyfus & Co.'s Stein issued his "loyal oposition" proclaimer, Wall Street betting has the inansigents electing as many as three new directors to the 1 ard. Then, on Friday afternoon, came the announcement tat Loew's management had accepted as nominees for the bard two new directors, Paul E. Manheim, a Lehman J os. partner, and Charles J. Stewart, Lazard Freres & <j>. partner. They replace two of management's prior iminees. Harold Stein said that Manheim and Stewart \11 have his full support. The last-minute task now remaining to Loew's management is an informed intelligence estimate of remaining eemy fire. In addition to Harold Stein, one other posS)le disputant, MCA president Jules Stein (related to the f'mer), can be scratched from the list. His holdings are B o pledged to the management. Who then make up the anti-management cliques? Acprding to information supplied us through an unusually t iable source, the following interests could be potentially hstile: Bache & Co., Hirsch & Co., Lowenstein Founda tion, Lord Abbott & Co., Louis B. Mayer, a powerful Chicago group, carrying the initials — H.D. Another potential sore-spot could be Bear Spear & Co., a late entry. Together these interests represent holdings rumored between 500,000 to 1,000,000 shares, as against the 81,700 (1.6% of total) shares personally held by Loew's directors. The aforementioned investment firms, of course, merely reflect the viewpoints of their clients, whom they represent beneficially or by proxy. Several have indicated that they will go along with management for the time being, at least while their customers do not press for adverse action. A Hirsch & Co. spokesman informed Film BULLETIN that the Stein conciliatory statement "tells the whole story", as far as his firm is concerned. Harold L. Bache, of Bache & Co., said he could make no statement on behalf of his company's clients, but agreed it might be a hot meeting. Another insider reported the possibility that Louis Mayer, one-time M-G-M oroduction head, might be "stirring". The big fact remains, Loew's stock has been coil-hot on the market. Interests are buying, and buying for a purpose. What other reason exists in the face of Loew's icecold recent earnings? What is the purpose? Possibly to plump for a realization of Loew's speculated liquidation Vc.lue — put by some as high as $60 a share (less some $9 a share of debt). Arthur Weisenberger & Co., for instance, said : "Loew's may be worth more dead than alive." Management might have a surprise answer to that crack, if, as some are saying, the Loew's executives need a dramatic coup to maintain the shareholder support. That surprise could come in the form of an earlier-than-expected spin-off of its valuable theatre holdings, which is bound to hypo the market price of the company's shares. Paralleling AL LICHTMAN departure from the ranks of 20th Century-Fox are rumors placing NED DEPINET, former RKO head, in a key company spot. A recent visitor to 20th-Fox quarters, Depinet, his intimates insist, is simply observing the social amenities with long-standing friend Spyros Skouras. ANOTHER PROXY BATTLE on tap? Could be, if the biting inquiries of a quiet but busy minority group are not assuaged. Company coined a gold mine in '54, tottered in '55 and, say the stockholders, lacks "imaginative" management. Film BULLETIN February 20, 1954 Page 7