MGM/UA modified a proposal to buy HEG stock.

The Culver City-based company said that its previously announced proposal to acquire the publicly held shares of HEG common stock through a merger of an MGM/UA subsidiary into HEG has been modified. HEG stockholders may now elect to receive, for each HEG share, either $28 principal amount of MGM/UA’s 10% series A senior subordinated notes due April 15, 1993 (or a maximum of $126 million principal amount), or 1.75 shares of MGM/UA common stock (or a maximum of 7.875 million shares). MGM/UA also said that it intends to vote its own shares of HEG common stock--about 85% of the outstanding shares--in favor of the merger plan.