POW! PERELMAN ZAPS INVESTORS
WHY ARE INVESTORS SO MAD at Ron Perelman, the billionaire owner of 80% of Marvel Entertainment Group? To prevent Marvel from making a Chapter 11 filing, Perelman proposed investing $350 million to acquire newly issued shares at a steep discount. The stock immediately fell 41%, to less than $3. The reason, say irate investors, is that the proposed deal scalps stock-and bondholders while it enriches Perelman. It also ensures that he keeps control of Marvel. ''Perelman doubles his money right away, and the shareholders go from $2.50 to $1.70 per share,'' gripes KDP Investment Advisors analyst Phelps Hoyt. His advice: Turn down Perelman's deal and allow Marvel to file for Chapter 11. Then, Hoyt figures, investors would stand a chance of making $4 a share.
EDITED BY THANE PETERSON
Updated June 14, 1997 by bwwebmaster
Copyright 1996, Bloomberg L.P.