Here are excerpts from the Aug. 12 letter from DreamWorks principal Jeffrey Katzenberg to Owen Thomas of Morgan Stanley and Daniel M. Neidich of Goldman, Sachs, whose companies control Playa Capital.

August 6th marked the one-year anniversary of the first meeting of our companies. Sadly, we are no closer to a deal now than we were a year ago. DreamWorks has negotiated earnestly and in good faith with you and your team. Now, just when it seemed as if we could sign a deal, you have informed us that … you have never seriously considered what may now be the only viable alternative.

Since mid-July 1998, we felt we had an agreement with you regarding the price of the land … of $20 million. On Aug. 4, 1998, Playa Capital sent us a letter increasing that price overnight by more than $28.7 million to an amount that now exceeds $48.7 million.

You had agreed to $20 million. We agreed to $20 million. Playa Capital cannot seem to take yes for an answer. This new reversal of position is completely unacceptable to us.