Embattled Cineplex Odeon Corp. has postponed its annual shareholders meeting until June 6.
The move from May 9 will give the company time to inform shareholders about "certain events" that have happened since the original meeting circular was mailed out, the company said in a statement.Analysts believed that Cineplex chairman Garth Drabinsky may be trying to raise over $664 million to buy outstanding shares and overall control of the company.
Drabinsky last week called a truce in his bitter battle with Los Angeles-based MCA Inc., a major shareholder, that was sparked by his attempt to buy a controlling interest in Cineplex.
Patrick Slattery, an analyst with Maison Placements of Toronto, said Drabinsky may be trying to arrange financing for his buyout strategy with First Boston Securities Canada Ltd.
Slattery said he finds it "difficult to believe" Drabinsky can raise the money, but now is a good time to try because "there is so much investment out there seeking a home."
"It's a good time to be looking for money to put together a deal," Slattery said.
Slattery said he doesn't think MCA would give up its interest in Cineplex because it needs the theatre chain as an outlet for its movies.
MCA would likely only agree to leave if it could strike a guaranteed distribution deal with Cineplex, Slattery said.