Kansas City, Mo. ? AMC Entertainment Inc.’s shares surged 23 percent Tuesday on reports that private equity firm J.P. Morgan Partners was negotiating to buy the movie theater company.

J.P. Morgan Partners, the private equity arm of J.P. Morgan Chase & Co., is in “advanced talks” to take AMC private for $19 to $20 per share, plus assumption of debt, The New York Post reported Tuesday. The Post, citing unidentified sources, said terms were still being negotiated and the deal could still fall through.

AMC officials said they would not comment on the Post story. A spokesman for J.P. Morgan Partners didn’t immediately return phone calls Tuesday from The Associated Press seeking comment.

Shares in AMC finished up $3.28 at $17.50 Tuesday on the American Stock Exchange.

AMC, the industry’s second-largest chain, and Loews Cineplex, the No. 4 chain, had said in late 2003 that they were discussing a possible merger that would have created a rival to industry leader Regal Cinemas. But nothing came of the talks, which the companies ended in January.

A group of investors led by Bain Capital bought Loews last month for $1.46 billion. That came on the heels of a deal in March in which Madison Dearborn Partners bought Cinemark Inc., the No. 3 theater chain, for $1.6 billion.

Analysts said they saw this year’s buying spree as proof the theater industry was finally recovering from the struggles of the late 1990s. During that time, most theater chains invested heavily in building new megaplex-style theaters and several had to declare bankruptcy.

AMC avoided bankruptcy and has been working to eliminate debt. In addition, AMC and some other chains did not build many new theaters and instead leased properties from developers or specialty landlords.

“Investors are looking for companies with stable business models and fairly high free cash-flow returns and attractive yields,” said analyst Jeffrey Logsdon of Harris Nesbitt.

Logsdon said AMC’s growth plans would not likely change as a private company, and it could actually save money on the many legal and regulatory requirements imposed on public companies. AMC operates 232 theaters. The company had revenues last year of $1.8 billion.