Tuesday, 31 May 2016
Last updated 3 days ago
Jun 2 2011 | 11:31am ET
Less than three months ago, Ryan Kavanaugh, head of Elliott Associates-backed movie studio Relativity Media, was crowing that millions in new money from the hedge fund "allows us to be a competitive, full-fledged studio." But now, it seems, Kavanaugh would like to be that without Elliott's help.
Kavanaugh plans to sell Elliott's stake in the studio to a consortium led by JPMorgan Chase, The Wrap reports. The only problem is, Elliott isn't selling.
"Elliott is not shopping, not selling not doing a single thing," the hedge fund said in a statement.
Whether Elliott can stop Kavanaugh is another question: The Relativity chief reportedly has an option to buy the hedge fund out for about $700 million, although Bloomberg News reports that the option has not yet been triggered.
According to the Wrap, the new investors have completed their due diligence on a deal not expected to close before the fall. Relativity has not officially informed Elliott of its plans, the report says.
Elliott has invested more than $1 billion in Relativity, which has suffered hundreds of millions of dollars in losses over the past several years. Last month, Elliott installed Relativity's former number two, Michael Joe, within the hedge fund to oversee its Relativity investment.