DealZone

Storming the Lions Gate

June 14, 2010

Playing the part of offended belle, Lions Gate Entertainment today asked its shareholders to reject the $7-a-share tender offer from Carl Icahn that would give him control of the Hollywood studio. It’s a much-dog-eared script in the world of M&A, and aside from an assured Hollywood ending, this one still has some drama to go.

What would Icahn do if he completed his offer and purchased all stocks tendered as of June 16th? “I will then conduct a proxy fight to seek to replace the board at the annual meeting,” Icahn said in a statement.

It’s been a months-long hostile saga and Lions Gates views Icahn’s offer as “financially inadequate, coercive and opportunistic.”

Trading barbs with Lions Gate in March, Icahn said, “You claim that I offer no ‘meaningful vision,’ thereby implying that you have one. I cannot help but wonder why your ‘vision’ — if so ‘meaningful’ — never translated into shareholder value?”

Is this curtains for Icahn or the board?

Comments
One comment so far | RSS Comments RSS

What is the matter with this guy. if we thought he had a clue how to run Lionsgate, then more of us might have tendered our holdings and he would not have been hammering our mailboxes for months trying to wear us down.

Why does Mr. Icahn not buy some fishing gear and go relax somewhere for a change? There is more to life than trying to gain total control of the companies in which one makes investments.

In how many companies, indeed in how many market sectors does Mr. Icahn fancy himself fit to operate as an executive? I fail to see that he has any particular expertise in the arenas in which Lionsgate plays, and I happen to approve the direction the company has taken of late. Apparently I am not alone, since Mr. Icahn’s tender offer seems to have been met primarily by junk mail shredders.

Posted by LizR | Report as abusive
 

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