The Wall Street Journal reports that Indian conglomerate Sahara India Pariwar is in exploratory talks to buy MGM for more than $2 billion, according to one source:
This person cautioned that the talks were at an early stage, and that MGM and its stakeholders haven’t yet shown substantial interest in doing a deal with Sahara, a Lucknow-based company whose businesses, according to its website, include TV and film.
After Spyglass execs Gary Barber and Roger Birnbaum signed a non-binding letter of intent September 8 to take over beleaguered MGM as co-chairmen and co-CEOs, on September 15, for the seventh time MGM’s lenders agreed to extend the forbearance period and not seek remedies in connection with the nonpayment of interest and principal due on the company’s bank debt, including the revolving credit facility, until October 29, 2010, the studio reported:
The lenders took this action in support of the Company’s ongoing efforts to evaluate long-term strategic alternatives to maximize value for its stakeholders. MGM appreciates the continued support of its lender group throughout this process.
UPDATE: Here’s THR.