AUSWR
The Association of U S West Retirees
 

 

 

Anschutz to gain more Regal rule
By David Milstead
Rocky Mountain News
Friday, October 27, 2006

A stock sale by one of Regal Entertainment Group's early investors will tighten Phil Anschutz's hold on the company.  Once Oaktree Capital Management sells roughly 7.7 million shares of Regal stock, Anschutz's voting control of Regal will top 90 percent.

The Knoxville, Tenn.-based movie theater chain trades on the New York Stock Exchange with most investors holding the company's Class A shares, which get one vote apiece.

Anschutz Co. and Oaktree Capital Management own the company's B shares, which get 10 votes apiece.  So while Anschutz owns just under 50 percent of Regal, he has 83 percent of the votes.

To sell shares, Oaktree will convert its supervoting B shares to A, leaving Anschutz Co. the sole holder of the 10-vote stock.  That increases his voting power.

Regal Entertainment is one of the most successful investments of Anschutz's career.   The financier snapped up the distressed debt of three struggling theater chains, then rolled them up into Regal.  The company went public in May 2002 and has paid more than $2.1 billion in dividends, half to Anschutz Co.

http://www.rockymountainnews.com/drmn/money/article/0,2777,DRMN_23908_5097070,00.html