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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. *)
Reading Entertainment Inc.
(Name of Issuer)
Common Stock
(Title of Class of Securities)
172862104
(CUSIP Number)
Andrew E. Shapiro
Lawndale Capital Management, LLC
Sansome St., Suite 3900
San Francisco, CA 94104
(415) 288-2330
Christopher J. Rupright, Esq.
Shartsis Friese & Ginsburg LLP
One Maritime Plaza, 18th Floor
San Francisco, CA 94111
(415) 421-6500
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
March 20, 2000
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition which is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check
the following box / /.
Note: Schedules filed in paper format shall include a signed original and
five copies of the schedule, including all exhibits. See Rule 13d-7(b) for
other parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which
would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities
Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of
that section of the Act but shall be subject to all other provisions of the
Act (however, see the Notes).
Potential persons who are to respond to the collection of information
contained in this form are not required to respond unless the form displays
a currently valid OMB control number.
SEC 1746 (10-97)
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CUSIP No. 172862104 13D Page 2 of 10 Pages
- ---------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
IRS IDENTIFICATION NO. OF ABOVE PERSON
Lawndale Capital Management, LLC
- ---------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /XX/
(b) / /
- ---------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
- ---------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) / /
- ---------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
- ---------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES -0-
BENEFICIALLY --------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 394,875
REPORTING --------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH -0-
--------------------------------------------------
10 SHARED DISPOSITIVE POWER
394,875
- ---------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
394,875
- ---------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
/ /
- ---------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.3
- ---------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO, IA
<PAGE>
CUSIP No. 172862104 13D Page 3 of 10 Pages
- ---------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
IRS IDENTIFICATION NO. OF ABOVE PERSON
Andrew E. Shapiro
- ---------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /XX/
(b) / /
- ---------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
- ---------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) / /
- ---------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- ---------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES -0-
BENEFICIALLY --------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 394,875
REPORTING --------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH -0-
--------------------------------------------------
10 SHARED DISPOSITIVE POWER
394,875
- ---------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
394,875
- ---------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
/ /
- ---------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.3
- ---------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
<PAGE>
CUSIP No. 172862104 13D Page 4 of 10 Pages
- ---------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
IRS IDENTIFICATION NO. OF ABOVE PERSON
Diamond A Partners, L.P.
- ---------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /XX/
(b) / /
- ---------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- ---------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) / /
- ---------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
- ---------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES -0-
BENEFICIALLY --------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 336,175
REPORTING --------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH -0-
--------------------------------------------------
10 SHARED DISPOSITIVE POWER
336,175
- ---------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
336,175
- ---------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
/ /
- ---------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.5
- ---------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
<PAGE>
CUSIP No. 172862104 13D Page 5 of 10 Pages
- ---------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
IRS IDENTIFICATION NO. OF ABOVE PERSON
Diamond A Investors, L.P.
- ---------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /XX/
(b) / /
- ---------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- ---------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) / /
- ---------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
- ---------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES -0-
BENEFICIALLY --------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 58,700
REPORTING --------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH -0-
--------------------------------------------------
10 SHARED DISPOSITIVE POWER
58,700
- ---------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
58,700
- ---------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
/ /
- ---------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.8
- ---------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
<PAGE>
CUSIP No. 172862104 13D Page 6 of 10 Pages
ITEM 1. SECURITY AND ISSUER.
This statement relates to shares of Common Stock (the "Stock") of Reading
Entertainment, Inc. (the "Issuer"). The principal executive office of the
Issuer is located at 30 S. 15th St., Suite 1300, Philadelphia, PA 19102-
4813.
ITEM 2. IDENTITY AND BACKGROUND.
The persons filing this statement and the persons enumerated in Instruction
C of Schedule 13D and, where applicable, their respective places of
organization, general partners, directors, executive officers and
controlling persons, and the information regarding them, are as follows:
(a) Lawndale Capital Management, LLC, a California limited liability
company ("LCM"); Diamond A Partners, L.P., a California limited partnership
("DAP"); Diamond A Investors, L.P., a California limited partnership
("DAI"); and Andrew E. Shapiro ("Shapiro") (collectively, the "Filers").
(b) The business address of LCM, DAP, DAI and Shapiro is One Sansome
Street, Suite 3900, San Francisco, California 94104.
(c) LCM is the investment adviser to and the general partner of DAP
and DAI, which are investment limited partnerships. Shapiro is the sole
manager of LCM.
(d) During the last five years, none of the Filers has been convicted
in a criminal proceeding (excluding traffic violations or similar
misdemeanors).
(e) During the last five years, none of the Filers was a party to a
civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a
judgment, decree or final order enjoining future violations of, or
prohibiting or mandating activities subject to, federal or state securities
laws or finding any violation with respect to such laws.
(f) Shapiro is a citizen of the United States of America.
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CUSIP No. 172862104 13D Page 7 of 10 Pages
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The source and amount of funds used in purchasing the Stock were as
follows:
Purchaser Source of Funds Amount
LCM Funds Under Management (1) $2,400,493.25
DAP Working Capital $2,042,897.28
DAI Working Capital $ 357,595.97
(1) Includes funds of DAP and DAI invested in Stock.
ITEM 4. PURPOSE OF TRANSACTION.
The Filers ("Lawndale") have been and may continue to be in contact with
the Issuer's management, members of the Issuer's Board of Directors, other
significant shareholders, and others regarding alternatives that the Issuer
could employ to maximize shareholder value. Those alternatives include,
but are not limited to, consolidating the Issuer and its affiliates, Craig
Corp (N-CRG) and Citadel Holdings (A-CDL), into a single entity with a
single class of stock, and implementing a stock buyback program.
Lawndale acquired the Stock solely for investment purposes because it
believes that the market price of the Stock, currently trading far below
the Issuer's book value, does not adequately reflect the potential value
of the Issuer's underlying businesses and assets.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
The beneficial ownership of the Stock by each Filer at the date hereof is
reflected on that Filer's cover page.
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CUSIP No. 172862104 13D Page 8 of 10 Pages
The Filers effected the following transactions in the Stock through the
Nasdaq National Market System on the dates indicated, and such transactions
are the only transactions in the Stock by the Filers since January 20,
2000:
Purchase Number Price
Name or Sale Date of Shares Per Share
DAP P 1/24/00 1,400 5.3100
DAI P 1/24/00 300 5.3100
DAP S 1/27/00 800 5.4398
DAI S 1/27/00 200 5.4398
DAP P 1/28/00 7,200 5.2475
DAI P 1/28/00 1,300 5.2475
DAP P 1/31/00 5,500 4.5600
DAI P 1/31/00 1,000 4.5600
DAP P 2/2/00 300 4.8725
DAP S 2/7/00 825 5.9398
DAP P 2/10/00 2,300 5.0456
DAI P 2/10/00 300 5.0456
DAP P 2/16/00 33,600 4.2277
DAI P 2/16/00 5,900 4.2277
DAP P 2/28/00 2,200 3.9500
DAI P 2/28/00 300 3.9500
DAP P 2/29/00 4,200 4.3563
DAI P 2/29/00 800 4.3563
DAP P 3/1/00 3,400 4.4584
DAI P 3/1/00 600 4.4584
DAP P 3/2/00 800 4.3100
DAI P 3/2/00 200 4.3100
DAP P 3/3/00 4,200 4.3725
DAI P 3/3/00 800 4.3725
DAP P 3/20/00 6,400 4.0000
DAP P 3/20/00 1,900 3.7702
DAP S 3/20/00 1,000 3.9400
DAI P 3/20/00 300 3.7702
DAI P 3/20/00 600 4.0000
DAP P 3/21/00 2,900 4.0625
DAI P 3/21/00 600 4.0625
DAP P 3/23/00 6,300 4.2500
DAI P 3/23/00 1,000 4.2500
DAP P 3/24/00 1,700 4.2500
DAI P 3/24/00 300 4.2500
DAP P 3/29/00 1,800 4.3125
DAI P 3/29/00 300 4.3125
<PAGE>
CUSIP No. 172862104 13D Page 9 of 10 Pages
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER.
LCM is the general partner of DAP and DAI pursuant to limited partnership
agreements providing to LCM the authority, among other things, to invest
the funds of DAP and DAI in Stock, to vote and dispose of Stock and to file
this statement on behalf of DAP and DAI. Pursuant to such limited
partnership agreements, the general partner of DAP and DAI is entitled to
allocations based on assets under management and realized and unrealized
gains.
In accordance with Article 4.3 of the Issuer's Articles of Incorporation,
the Issuer's Board of Directors has. approved Lawndale's request to own
common stock in excess of 4.75%.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
A. Agreement Regarding Joint Filing of Statement on Schedule 13D or 13G.
SIGNATURES
After reasonable inquiry and to the best of my knowledge, I certify
that the information set forth in this statement is true, complete and
correct.
DATED: March 29, 2000
Lawndale Capital Management, LLC Diamond A Partners, L.P.
By: Lawndale Capital Management,
By: Andrew E. Shapiro, Manager LLC
By: Andrew E. Shapiro
Manager
Diamond A Investors, L.P.
By: Lawndale Capital Management, Andrew E. Shapiro
LLC
By: Andrew E. Shapiro, Manager
<PAGE>
CUSIP No. 172862104 13D Page 10 of 10 Pages
EXHIBIT A
AGREEMENT REGARDING JOINT FILING
OF STATEMENT ON SCHEDULE 13D OR 13G
The undersigned agree to file jointly with the Securities and Exchange
Commission (the "SEC") any and all statements on Schedule 13D or Schedule
13G (and any amendments or supplements thereto) required under section
13(d) of the Securities Exchange Act of 1934, as amended, in connection
with purchases by the undersigned of the common stock of Reading
Entertainment, Inc. For that purpose, the undersigned hereby constitute
and appoint Lawndale Capital Management, LLC, a California limited
liability company, as their true and lawful agent and attorney-in-fact,
with full power and authority for and on behalf of the undersigned to
prepare or cause to be prepared, sign, file with the SEC and furnish to any
other person all certificates, instruments, agreements and documents
necessary to comply with section 13(d) and section 16(a) of the Securities
Exchange Act of 1934, as amended, in connection with said purchases, and to
do and perform every act necessary and proper to be done incident to the
exercise of the foregoing power, as fully as the undersigned might or could
do if personally present.
DATED: March 29, 2000
Lawndale Capital Management, LLC Diamond A Partners, L.P.
By: Lawndale Capital Management,
By: Andrew E. Shapiro, Manager LLC
By: Andrew E. Shapiro
Manager
Diamond A Investors, L.P.
By: Lawndale Capital Management, Andrew E. Shapiro
LLC
By: Andrew E. Shapiro, Manager
CJR\3693\015\1093089.01
