Blockbuster Still Wants Hollywood

Blockbuster says it may still try to acquire video rental company Hollywood Entertainment Corp.

Blockbuster says it may still try to acquire video rental company Hollywood Entertainment Corp.

In a statement released yesterday (Jan. 18), Blockbuster says it is considering beating Movie Gallery's $1.2 billion bid for Hollywood, which was approved Jan. 10.

"We are disappointed that the special committee of Hollywood's board of directors elected to enter into a merger agreement with Movie Gallery without giving Blockbuster a fair opportunity to participate in the auction process," John Antioco, Blockbuster's president/CEO, says in the statement.

Blockbuster said Dec. 28 that it would launch a hostile takeover of Hollywood, in a $1 billion deal, if it did not get cooperation from Hollywood's board. Blockbuster's takeover would have paid Hollywood $11.50 per share, while Movie Gallery is offering $13.25 per share.
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