National Amusements theaters draws first bids-sources

TORONTO, May 12 (Reuters) - Sumner Redstone's National Amusements has received a first round of bids for its U.S. and U.K. theater chains, with bidders offering enough to help the company pay off its debt obligations due in 2009, sources familiar with the matter said.

At least 10 parties have bid in each auction, the sources said, adding that the U.S. auction had been expanded to include most of the theaters in New England, which were previously excluded from the sale.

The people requested anonymity because details of the auction have not been made public.

Some parties have bid for all the U.S. properties up for sale while others have pitched for particular theaters, the sources said. Bidders for the U.S. properties are mostly U.S.-based strategic rivals and private equity firms, the sources said.

(Reporting Jui Chakravorty; Editing Bernard Orr)