Lions Gate rejects Icahn offer to boost stake (Reuters)
NEW YORK (Reuters) – Lions Gate Entertainment said on Friday it had rejected activist investor Carl Icahn's unsolicited bid to increase his share in the independent movie studio.
Icahn, who already holds a stake of about 18.9 percent, last month offered to buy another 13.2 million shares, at $6 a share. Such a deal would lift his stake to 29.9 percent and make him the largest shareholder in the company.
The company also proposed that its shareholders adopt a rights plan to help ward off similar attempts to accumulate shares "that would result in coercive or unfair attempts to take over Lionsgate without affording all shareholders the opportunity to sell all of their shares for fair value."
In a statement, the company said Icahn's offer was "financially inadequate" and not in the best interests of its shareholders.
Icahn was not immediately available for comment.
Icahn's offer came after Lions Gate had expressed interest in acquiring the studio MGM and the Walt Disney film unit Miramax.
"We are confident we can better serve our shareholders by continuing to execute our strategic business plan, and the acquisition of effective control by the Icahn Group would significantly jeopardize that plan," the company said.
Lions Gate said it will hold a shareholder meeting on May 4 to address the implementation of the rights plan.
(Reporting by Franklin Paul; Editing by Derek Caney)