Thursday, 18 December 2014
Last updated 16 hours 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.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.