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Bennet headed big-bucks theater deal for Anschutz

By David Milstead, Rocky Mountain News (Contact)

Published January 2, 2009 at 2:25 p.m.
Updated January 2, 2009 at 11:56 p.m.

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Michael Bennet came to Denver more than a decade ago with impressive intellectual credentials and zero business experience. Denver billionaire Phil Anschutz changed that.

Kansas native Anschutz built his fortune through energy exploration and railroads before hitting a home run with the founding of Qwest. In recent years, he's branched out into sports, with investments in venues and soccer teams, and entertainment, with film production and concert promotion. He ranked 36th in the most recent Forbes list of the richest Americans with estimated wealth of $8 billion.

Anschutz hired Bennet for his investment team in 1997 despite the Yale law school grad's admission that he couldn't find his way through an income statement. Democrat Bennet also seemed an odd ideological choice for the conservative Christian Republican Anschutz.

The record suggests Bennet learned business quickly. His biggest deal was leading a movie theater transaction that ranks as one of Anschutz's biggest investment successes.

Movie theater chains United Artists, Regal Cinemas and Edwards Theatres fell into bankruptcy in 2000 and 2001 as the debt-ridden industry struggled after overbuilding screens. Anschutz's companies bought the bonds of these companies during their descent, paying pennies on the dollar. When the theater chains emerged from bankruptcy, Anschutz's companies had a controlling interest in the newly issued, privately held stock of the theater companies.

In early 2002, the three theater chains were combined into Regal Entertainment Group, and the stock was sold to the public in May 2002. All told, financial filings suggest Anschutz paid around $500 million for his stake in the company. Since 2002, Anschutz has received more than $1.3 billion in dividends from the company, and his shares are worth more than $750 million today.

Bennet's reward was much smaller, though not inconsiderable. He owned more than 250,000 shares of the public Regal Entertainment Group. A review of public filings by the Rocky suggests Bennet made more than $6 million from dividends and sales of the stock.

Comments

  • January 3, 2009

    8 a.m.

    Suggest removal

    gatengreen writes:

    I feel for Bennet. When he gets to DC and has to deal with the likes of Pelosi & Reid he will probably get ill. His background doesn't look anything like a democrat.

  • January 4, 2009

    8:53 p.m.

    Suggest removal

    Burt writes:

    gatengreen, can you offer any specifics? What is your informed perspective on Bennet?