Old MGM studios gone with the station

THE historic Hollywood film studio, Metro Goldwyn Mayer, has been sold by Credit Lyonnais for $1.3 billion.

The studio, which made such blockbusters as Gone With The Wind, has been bought by an Australian television station and a billionaire US investor.

Australia's Seven Network will own half the common stock in the studio. Seven will have equal board representation with the billionaire, Mr Kirk Kerkorian, who will provide most of the funds, said Seven chairman, Mr Kerry Stokes, who announced the details in Sydney.

Credit Lyonnais, which has a majority stake in the Irish financial services group Woodchester, took control of the famous studio in 1992 when MGM's then owner, the Italian financier, Mr Giancarlo Parretti, defaulted on loans.

Credit Lyonnais formed the Consortium de Realisation holding company to sell some troubled assets, including MGM, and at one stage expected to receive up to $2 billion for the studio.

MGM's new owners, who also include current management, led by chairman and chief executive, Mr Frank Mancuso, plan to list the studio on the stock market in the next three to five years, Mr Stokes said.

Recent hits such as the comedy The Birdcage and the James Bond film Golden eye have helped rejuvenate the 72 year old studio.

Mr Rupert Murdoch's News Corp, which owns Fox film studios and 15 per cent of Seven Network, made an unsuccessful bid, believed to be worth about $1 billion. The successful bid by the joint venture group called P&F Acquisition was not the highest, with Polygram NV, the entertainment unit of the Dutch electronics giant Philips, believed to have offered more money.

The joint venture company is expected to take control of MGM by mid September, with Mr Kerkorian providing $650 million of the acquisition price.

Mr Kerkorian, who has twice owned MGM, first in 1981, said current management would be allowed to operate unhindered.