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considerably. Credit Lyonnais had reason to get out of its
investment in MGM as expeditiously as possible.
At some point, Credit Lyonnais decided to sell all the
assets of MGM. Credit Lyonnais assigned to CDR’s new management
team (which included Mr. Jouannet) the task of putting together
the investment banking support and other support necessary to
sell New MGM. This team selected Lazard Freres & Co., LLC,
(Lazard & Freres) as its investment banking firm and exclusive
financial adviser for the sale of New MGM. In early 1996, Credit
Lyonnais, through CDR, formally put New MGM up for sale to pay
off its outstanding debts. Credit Lyonnais and MGM management
hoped and expected to sell MGM for approximately $2 billion.
IV. Safari Acquisition Co.
A. Safari Consortium
In early 1996, Mark Seiler contacted Mr. Lerner about
organizing a bid for New MGM. Mr. Seiler was the U.S. president
of Capella Films, Inc., a motion picture company and a wholly
owned U.S. subsidiary of Deyhle Media Group, one of the largest
film distributors in Germany.22 Mr. Lerner introduced Mr. Seiler
to Mr. Ackerman. At some point, a consortium called the Safari
22 At the time, the five or six “major” motion picture
companies were producing virtually all the motion pictures
exhibited in the world, and this consolidation was jeopardizing
the ability of Deyhle Media Group, and other distributors, to
acquire motion picture content for distribution. Deyhle Media
Group was interested in acquiring New MGM to assure a continuous
flow of motion picture product.
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