THEATRE DEAL SET TO CLOSE
By Adnews Staff
The merger of Loews Theatres Exhibition Group of New York and Cineplex Odeon of Toronto is expected to close in the second quarter of the year. Loews is a unit of Sony Retail Entertainment. The merged company will be known as Loews Cineplex Entertainment Corp. Under the deal, Sony will own 51.1% of the theatre chain and Universal Studios will have a 26% stake. The Trusts for the Charles Rosner and Bronfman family will own 9.6% and Cineplex public shareholders will hold a 13.3% share. The merger will give the chain over 2,700 screens in 450 locations primarily in major cities in 22 states throughout the U.S. and six provinces in Canada. Loews Cineplex will be operated by Lawrence Ruisi, who will take the post of president and CEO. Currently he holds the same position at Sony. Over the next two years, Loews Cineplex plans to open 30 locations in North America, comprising of up to 550 screens. The deal is subject to regulatory approval in the U.S. and Canada. Canadian advertising for Cineplex is done in-house.