Philips, which has a 75% stake in PolyGram, lit a bonfire announcing last Wednesday that it had received several expressions of interest from potential bidders and was "evaluating various strategic options with respect to its stake in PolyGram."

But, said Jan Verheyen, senior vice president of international distribution at PFI, "We are of course not blissfully unaware of the more general situation but it's business as usual. Everybody at this company has a responsibility towards the films which are in the pipeline at the moment. There are films being released as we speak: The Big Lebowski, A Thousand Acres, for example."

Regarding possible pick-ups, Graeme Mason, senior vice president for acquisitions will be in Cannes. "If he doesn't pick up anything it will say more about the films on offer than his commitment to buying films," Verheyen continued. PolyGram is also continuing to move projects forward towards greenlighting, he commented.

It seems only a matter of common-sense, however, that with a clarification of PolyGram's share status just six days off, PFE is unlikely to make many formal announcements beforehand on either new projects, or longer-term strategic moves.

Moves likely to be put on hold now include the formal creation of stand-alone distribution operations in Mexico, Argentina and Brazil and confirmation of PolyGram's mooted entry, according to the Madrid rumour mill, into local film production in Spain. 

While the business plan for own Latin-American distribution is ready, it is unlikely that it will be uppermost on the mind of PolyGram president Alain Levy. 
The downside of a Philips' sell-out of PolyGram to a US studio is gradually being assimilated by the industry. One large consequence could be the loss of Europe's  only true film major.

One thing seems certain, however: the longer uncertainty reigns at PolyGram, the more difficult it will become for the company to maintain its ongoing dynamism. 
John Hopewell