07/22/96 RON, RUPERT, AND THE KING BROTHERS

RON, RUPERT, AND THE KING BROTHERS

What's the latest in the on-again, off-again talks between Ronald Perelman and Rupert Murdoch? The situation is muddled by a third party: the King brothers--Roger and Michael--who head King World Productions (KWP). So far, it is known that Murdoch, who controls News Corp. (NWS), wants to buy the Perelman-controlled New World Communications Group (NWCG). Now, rumors are flying that Perelman is chasing King World.
``No matter how you slice it, Murdoch will end up buying New World by the end of this year,'' says a New York money manager. Murdoch owns 20% of New World, but Perelman owns 90% of the voting shares. The company owns and operates 10 TV stations and produces TV programs. The stations are all affiliates of Fox Broadcasting, a unit of News Corp.
Dennis McAlpine, managing partner at the New York investment firm Josephthal Lyon & Ross, is also betting Murdoch will buy New World. He says previous undisclosed talks between Perelman and Murdoch bogged down over price: Perelman wanted 28 a share, while Murdoch wanted to pay only 25. McAlpine says New World is worth 24 to 27. The ultimate price will depend on whether Perelman acquires King World. Without King World, the buyout price could be 25, he thinks. But if King World becomes a part of New World, the price could go to 28 or more, he figures. New World is currently trading at 15.
Time is on Murdoch's side: Perelman is believed eager to sell in order to acquire casinos in Las Vegas and Atlantic City. Both cities have granted Perelman a license to operate. Spokesmen for Perelman and Murdoch say they don't comment on market rumors.

BY GENE G. MARCIAL