Guilds Unlikely to Block CAA’s French Bank Deal

The major Hollywood guilds representing actors, directors and writers are likely not to contest a Creative Artists Agency consulting deal with Credit Lyonnais, the French bank that owns the Metro-Goldwyn-Mayer studio.

According to sources familiar with the talks, CAA has assured the guilds that its consulting activities with the bank will remain separate from its representation of stars, directors and writers.

CAA is also believed to have argued that MGM Co-Chairman Alan Ladd Jr.’s contract gives him sufficient autonomy to prevent CAA from interfering with creative decisions at MGM, and that various banking laws prevent CAA from delving into the secrets of Credit Lyonnais’ entertainment clients.

In addition, CAA has given assurances that the guilds may monitor its Credit Lyonnais consulting activities and that its involvement with MGM will end once Credit Lyonnais divests itself of the studio, which it must do by May, 1997, under U.S. banking laws.

The consulting deal erupted into a controversy earlier this month, when Jeffrey Berg, chairman of rival International Creative Management, charged that it constituted a conflict of interest.

Despite the pending agreement between CAA and the guilds, Berg’s lawyers have asked federal officials to determine whether the deal violates antitrust policies.

But odds of federal intervention happening are uncertain because key federal positions in regulatory agencies remain unfilled by the Clinton Administration.

Guild representatives late Wednesday said that some issues were still being negotiated. Officials at both CAA and ICM said they did not want to comment.