LOS ANGELES (CelebrityAccess MediaWire) — Key Brand Entertainment has filed a lawsuit against Live Nation, accusing the promoter of creating a phony bidding war in the sale of their U.K. Theatrical properties.
When Key Brand purchased Live Nation's Broadway East Coast operation and a string of eight theatres from the promoter in 2008, a provision in the deal was a bidding agreement for Live Nation's UK theatres.
According to Courthouse News, the bidding agreement would allow Key Brand to match bids submitted by other parties and that Live Nation was allowed to accept a third-party bid that 107.5 percent or more than Key Brand's offer. Key Brand maintains that the agreement gave them the right rather than the opportunity to purchase the U.K. Theatres.
Key Brand claims that they submitted a series of bids to Goldman Sachs (who were handling bidding for Live Nation) and that their final bid was $133.5. Key Brand then claims that after the bidding deadline had passed, they subsequently learned that only one other "significant" offer had been made on the properties to the tune of $131.1 million.
Key Brand then claims that Ambassador came in with a last minute bid of $143.6 million that just barely exceeded the 107.5% threshold and Key Brand alleges that Live Nation provided guidance to Ambassador on how much to bid. Key Brand claims that ten days later, Live Nation instructed Goldman to offer the theatre properties to Key Brand in exchange for a nonrefundable $8 million deposit and $155.7 million – Key Brand turned them down.
Key Brand is seeking an order that would place the theatres in trust and clarifying Keybrand's rights in the sale. – CelebrityAccess Staff Writers