Pathe Will Sell 60% of Cannon to Dutch Firm

Pathe Communications Co., which is trying to acquire MGM/UA Communications Corp., agreed Tuesday to sell its controlling stake in Cannon Pictures to a Dutch production firm in a $15-million deal.

Trihoof Investments B.V. submitted a tender offer of 13.6 cents per share for the 60% of Cannon’s stock held by Pathe. Trihoof President Ovidio Assonitis already owns 20% of Cannon Pictures and has served as the Beverly Hills company’s chairman and chief executive since last year.

Assonitis, seeking to establish a greater presence in Hollywood, would get a film library, a Beverly Hills office building and Cannon’s staff under the agreement. Also included in the package are a six-film contract between Cannon Pictures and action-adventure star Chuck Norris and a one-film deal with another popular star, Charles Bronson.

But other major assets, including a separate Cannon Group film library with 800 titles, a chain of theaters and foreign distribution rights to Cannon films, would be retained by Pathe. Pathe also would get the rights to three films on the current Cannon Pictures release schedule.

Cannon Vice Chairman Bill Immerman said the deal will make Trihoof a more important player in the filmmaking community. “The primary intent . . . is to replace Pathe as our majority shareholder,” Immerman said. “We want to chart our own course.”

Both sides denied that the sale has any connection to Pathe’s bid to acquire MGM/UA. Craig Parsons, a spokesman for Pathe, said the deal simply made sense economically for the parties.

Under the terms of the deal, Trihoof has offered $5 million for Pathe’s 32.7 million shares of Cannon common stock, 28.8 million Class A warrants and 26.1 million Class B warrants. Trihoof has agreed to buy the Cannon Pictures office building on Wilshire Boulevard for $9 million and will also assume responsibility for a $15-million loan from Credit Lyonnais to Cannon Pictures.