New York – Activist investor Carl Icahn, who recently made a
bid to increase his stake in film studio Lionsgate (NYSE: LGF) from 18.9% to 30%, on Friday
expanded his bid to include all outstanding shares he does not already own. The
offer price remains $6 per share in cash for Lionsgate shares that would
increase Icahn’s stake to at least 50.1%. Icahn has previously used his wealth
in part to look to acquire large enough stakes in companies, such as Yahoo,
Take-Two and Blockbuster, so as to control board seats, and effect some form of
change at these companies.
Icahn opposes Lionsgate’s participation in an
auction for the film libraries of MGM and Miramax, and aims to replace the
current board of directors and management of Lionsgate.
"I believe that
Lions Gate’s management should not further leverage up the company to purchase
a film library without allowing shareholders the opportunity to decide whether
increasing exposure to this segment is wise," Icahn said in a statement.
believe that the best course for Lions Gate is to pursue a strategy aimed more
at the consolidation of film and television distributors, as opposed to the
acquisition of library assets," he added.
"First we objected to [Icahn’s] offer
by saying he was trying to acquire control of Lions Gate without paying a
control premium," Lionsgate spokesman Peter Wilkes told The Wall Street
"Now, he’s trying to buy the whole company without paying a
control premium, so this is even worse."