Icahn Looks to Up Lionsgate Stake

TORONTO/SANTA MONICA: Billionaire investor Carl Icahn wants to increase his ownership stake in Lionsgate to just under 30 percent, up from the current 18.9 percent.

Icahn announced yesterday that he intends to initiate a tender offer for up to 13,164,420 common shares of the independent studio to bring his stake to 29.9 percent of the outstanding common shares. He has set a purchase price of $6 per share.

Lionsgate issued a statement noting: "Consistent with its fiduciary duties and in consultation with its financial and legal advisors, Lionsgate’s Board of Directors will review Mr. Icahn’s proposal and will make its recommendation to shareholders promptly. Lionsgate noted that there is no need for shareholders to take any action at this time."

Lionsgate has expressed interest in the acquisitions of MGM as well as Miramax, which was recently shuttered by Disney. Icahn, meanwhile, told the Los Angeles Times: "I’m quite concerned about them paying too much for acquiring a library like MGM or Miramax, especially in light of the precipitous decline in the value of libraries. We don’t want to see a roll of the dice with shareholder money without giving shareholders the right to vote on it…I feel with 30 percent my view would get more respect, hopefully."