Monday, October 14, 2019

ICAHN MAKES FINAL PLAY FOR LIONS GATE CONTROL

June 29, 2010 by · Leave a Comment 

Investor Carl Icahn has warned shareholders in Lions Gate Entertainment that if they do not sell their shares to him at $7.00 a share, they will drop below that amount when his offer to buy them at that price expires on Wednesday. “I firmly believe that after the expiration of my tender offer – which will not be extended — the price that Lions Gate will trade at will be lower than $7.00 per share,” he said in a statement. “If the shareholder sells me stock at $7, I believe he will have ample opportunity to buy it back at a cheaper price if he wishes to, which is OK with me.” Icahn said that he had launched his takeover bid after it had become clear to him “that Lions Gate’s board and management’s views of the road Lions Gate should take was diametrically opposed” to his own. Icahn has stated that the company should focus on television production and get out of movie production altogether, especially high-budget films. He lashed out at Lions Gate executives who reportedly are considering a merger with MGM. “Tying two one-legged men together does not mean they will run faster — in fact it will slow them down,” he remarked. Icahn has recommended that the company limit its involvement in the movie business to the distribution of independent productions. Lions Gate fired back that Icahn’s statement was filled with misstatements. “Our financial performance is strong, our momentum is growing and our direction is clear,” the company said.