UPDATED: Sahara India said kicking the tires at MGM (WSJ, THR, FT)

By Nancy Tartaglione

UPDATED: Further to this weekend's revelation that Sahara India Pariwar is circling MGM, Bloomberg, citing a person with knowledge of the offer, reported Monday that James Bond producers, the Broccoli family, are also involved in the bid. According to the person, Barbara Broccoli and Michael G. Wilson are part of the offer and would receive an undisclosed equity stake in MGM if it succeeds.

However, EON Productions, the London-based producer of the Bond movies run by Broccoli and Wilson, told Bloomberg it isn't involved in Sahara India Pariwar's bid for the studio.

"EON Productions tonight confirmed they have never had any contact with Sahara India Pariwar and are in no way involved in the Sahara India Pariwar bid for MGM," spokeswoman Stephanie Wenborn said in a statement.

Meanwhile, Deadline yesterday acquired an internal MGM memo which reiterated the studio's commitment to working with Spyglass Entertainment's Gary Barber and Roger Birnbaum to become the co-chairmen and co-chief executive officers of MGM upon consummation of a restructuring.

The memo also noted that the process is still evolving and that "there are not a lot of definitive answers at this stage."

PREVIOUSLY:

Over the weekend, it emerged that Indian conglomerate Sahara India Pariwar is in exploratory talks to acquire MGM for more than $2 billion. A report in the Wall Street Journal credited an unidentified source with the intel.

Spyglass' Gary Barber and Roger Birnbaum have been in an extended review of MGM financial data after signing a letter of intent to run the studio as co-chairmen and -CEOs, with Spyglass in line for an almost 5% stake in the studio, The Hollywood Reporter notes.

That tentative deal would fit into a reorganization via pre-packaged bankruptcy that would see almost $4 billion in MGM debt turned into slices of studio ownership to be spread among more than 100 lenders.

Under its plans for MGM, Sahara India, controlled by billionaire industrialist Subrata Roy, is prepared to pay up to half of the studio's debt, The Financial Times reported.

MGM's debt is largely held by hedge funds. Sahara would likely have to pony up more than the studio's $2.4 billion implied valuation in order to garner substantial interest from creditors, the Journal said. Sahara would receive an equity stake in the company in return.

Roy -- one of India's most flamboyant businessmen -- has been actively looking for ways to bring Bollywood closer to Hollywood, people close to him told the FT.

Related Links

Indian Company In Talks for MGM (WSJ, sub)
Sahara India Pariwar eyes MGM buy (THR)
India's Sahara in talks to rescue MGM (FT, sub)
James Bond Producers Said to Join Sahara Bid for MGM Studio (BLOOM)
MEMO: MGM Not Veering From Spyglass (DH)