General Cinema to Buy Rest of Neiman

CHESTNUT HILL, Mass. — General Cinema Corp., demonstrating a sharp sense of timing for bargains, said Tuesday that it would buy the shares of prestigious retailer Neiman Marcus that it does not already own for $240 million in cash.

Chestnut Hill-based General Cinema, one of the nation’s largest movie theater operators, now owns about 60% of Neiman Marcus Group Inc. but controls only 44% of the voting stock.

It said it will buy the rest of the publicly held shares in a tender offer for $14.40 a share.

“General Cinema is quite famous for making acquisitions at an opportune time. They are very patient buyers,” said Janet Kloppenberg, an analyst at Robertson Stephens Coleman. “But shareholders may demand the offer be sweetened.”

Several retail industry analysts described the offer as fair, given Neiman Marcus’ lackluster earnings and the industry’s sluggishness, but investors apparently disagreed. They pushed Neiman Marcus shares up $3.375 to $14.625 in active New York Stock Exchange trading.