AMC is challenged again on merger deal with Carmike

A second Carmike Cinemas investor has said AMC Entertainment Holdings’ planned $1.1 billion takeover undervalues the movie theater company.

The comments from Driehaus Capital Management puts more pressure on the merger partners to show the rationale behind the $30-a-share offer price.

“Despite the logic of the transaction, the value it creates does not appear to be shared equitably,” Driehaus Capital said Thursday in a statement.

The Chicago-based investment firm, which hadn’t previously disclosed a stake in Carmike, said it owned 1.81 million shares, or 7.3 percent, which would make it the largest shareholder.

An AMC spokesman declined to comment Thursday, saying that would be better left to Carmike.

Driehaus said Carmike should be worth $43.50 to $47.25 per share. The investment group joins Mittleman Brothers LLC, which has a 7.1 percent stake, in criticizing the deal price.

Leawood-based AMC Entertainment, the No. 2 U.S. exhibitor, had announced the agreement to buy No. 4 Carmike Cinemas on March 3. AMC said the two theater networks overlap only slightly and have different audience mixes, which makes the merger all the more logical.

AMC is majority owned by Dalian Wanda Group, led by China’s richest man, Wang Jianlin.

Carmike’s board unanimously agreed AMC’s offer was the best choice for shareholders, the company said in a statement. When making its decision, the board of the Columbus, Ga.-based company had considered the interest level of other potential acquirers and Carmike’s potential value if it chose to remain a standalone company, a spokeswoman said.

Since the announcement, Carmike CEO David Passman has expressed “melancholy” over the deal and its potential impact on Columbus.

This story was originally published March 24, 2016 at 12:53 PM with the headline "AMC is challenged again on merger deal with Carmike."