Sony increase bid to sweeten MGM buy-out deal

Japanese electronics and entertainment conglomerate Sony Corp. has slightly sweetened its bid for film studio Metro-Goldwyn-Mayer Inc., according to a report published Friday.

Sony is in talks to buy MGM for nearly $5 billion with partners Texas Pacific Group and Providence Equity Partners, but Time Warner Inc. is also in negotiations with MGM about buying the studio for a similar price, reports CNN Money.

The New York Post reported that Sony had submitted its enhanced bid to MGM Thursday morning before a board meeting, hoping to swing the negotiations in its favor.

A Sony spokesman in Tokyo declined to comment on the report.

The newspaper did not provide details of the new offer, but it quoted a source as saying the changes were made to make MGM feel more comfortable about the Sony-led group's ability "to fulfill its obligation" to buy the company.

Sources close to the talks have said Time Warner had the upper hand in the battle to buy MGM.

Time Warner switched from a stock offer to an all-cash bid of up to $4.6 billion last week, media reports have said.

This was just below the nearly $4.7 billion the Sony-led group had offered before sweetening its bid, the Post said.

Although the Time Warner bid is lower, MGM controlling stakeholder Kirk Kerkorian has been wary about the risks associated with the Sony offer because of its complicated structure, according to the newspaper.

On the other hand, any deal with Time Warner could run into antitrust hurdles given that Time Warner already owns the biggest film library in the world, the Post added.

The newspaper said MGM could make a decision as early as next week.

Shares of Sony ended Tokyo trade down 1.28 percent at ¥3,850, compared with the Nikkei average's 0.79 percent dip.

Thanks to `JP` for the alert.

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