Storming the Lions Gate
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?