AMC sweetens offer to buy Carmike Cinemas

AMC Entertainment Holdings has sweetened its offer to buy Carmike Cinemas by about 10 percent to $1.2 billion in cash and stock after some shareholders spurned an earlier bid.

Carmike shareholders will get the choice of receiving either $33.06 in cash or 1.0819 shares of AMC's Class A common stock, Leawood, Kan.-based AMC said in a statement Monday. The deal also includes the assumption of Carmike's net debt.

Carmike operates the Wynnsong 12 in southwest Cedar Rapids, the Cobblestone 9 in Des Moines and the Wynnsong 16 in Johnston.

AMC and Carmike agreed in March to a $30-a-share cash deal that would create the world's largest cinema chain and extend Chinese influence in the movie industry.

AMC, controlled by Chinese billionaire Wang Jianlin, said the amended merger agreement is a 'best and final” offer, representing a premium of about 32 percent over Carmike's stock price on March 3 - the last date before the announcement of the company's original transaction.

AMC has been trying to acquire Carmike despite opposition from Carmike's largest stockholders, who said the original price is too low. The company agreed earlier this month to acquire U.K. cinema chain Odeon & UCI Cinemas Group for $1.2 billion, but said it was still willing to save the Carmike transaction if it could reach acceptable terms.

Carmike's two largest shareholders - Mittleman Brothers and Driehaus Capital Management - oppose the deal. Together they own about 20 percent of the theater chain, according to data compiled by Bloomberg.

AMC's Chief Executive Officer Adam Aron said this week he's unwilling to pay the $40 a share sought by some investors.