Cineworld’s £2.7bn bid

SHARES in Cineworld plunged 20pc as it revealed it was preparing to launch a takeover of the secondlargest cinema chain in the US.

The UK firm is in advanced talks with Regal Entertainment and is preparing to make a cash offer at £17 per share – a total of £2.7bn. If a deal is to take place, the purchase will dwarf Cineworld’s market value of £1.6bn.

Cineworld said it would fund the purchase of Regal through a mix of debt and equity raising from its shareholders.

Cineworld’s share price closed 19.8pc lower yesterday, to end the day at 557p, a fall of 137.5p.