Mark Cuban Reports 9.4 Percent Stake In Carmike Cinemas

December 29, 2008 2:25 p.m. EST

New York, NY (AHN) - In a Securities and Exchange Commission filing, billionaire Mark Cuban reported purchasing a 9.4 percent or 1.2 million share stake in Carmike Cinemas.

The shares were purchased on the open market for roughly $2.8 million, about $2.30 a share. Cuban began accumulating shares in the cinema company in October and continued to do so well into December. Cuban said he accumulated the shares for investment purposes, in a required SEC filing on Monday.

Cuban added that he reserves the right to contact Carmike officers or directors from time to time, to discuss the company's performance.

The Dallas Mavericks owner was in the news just a month ago when the SEC accused him of using insider information to exit a position he held just before the company announced a secondary stock offering.

Cuban, if found guilty, could face a fine upward of $3 million.

Shares of Carmike Cinemas Inc. are trading 3.5 percent lower to $1.96 in midday trading.