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ICAHN’S LIONSGATE EXODUS COST HIM MORE THAN $500 MILLION

January 3, 2013 by · Leave a Comment 

Carl Icahn

It may go down as corporate raider Carl Icahn’s biggest miscalculation: his decision in 2011 to sell his 33-percent stake in Lionsgate at $7.00 a share after his failed takeover attempt. On Wednesday Lionsgate shares hit an all-time high of $16.88 on the NYSE, at one point hitting $17.08. The 3-percent gain came after B. Riley Caris analyst David Miller increased his price target on the stock to $21.00 and reaffirmed his “buy” rating. (The market in general also surged on Wednesday, the first day of trading following the New Year’s Day fiscal-cliff agreement.) For nearly two years Icahn had waged a relentless takeover battle, accusing the studio’s CEO, Jon Feltheimer, and its vice chairman, Michael Burns, of overspending and taking on risky investments in movies instead of safer ones in television. “You know, it’s very hard to pick stocks,” he said, “but it’s impossible I think to pick the right movie,” he said during an interview last year, explaining why he had dumped his Lionsgate shares. Had he held on to them, they would have increased in value by more than half a billion dollars.