Icahn Steps Up MGM Effort

NEW YORK: Carl Icahn is stepping up his efforts to prevent the planned combination of MGM and Spyglass Entertainment, increasing the amount of debt he is willing to acquire to $1.6 billion.

Icahn is offering to buy MGM debt in order to secure votes against the Spyglass merger. He is lobbying for an MGM combination with Lionsgate, in which he is a significant stakeholder. Last week, he offered a purchase price of $0.45 per $1.00 in principal amount, with the goal of acquiring a minimum of $963 million worth of MGM debt. Yesterday, he upped the offer to $0.53 per $1.00 in principal amount and at least $1.6 billion in debt being tendered. This, together with the level of debt already owned by Icahn, would be equivalent to 51 percent of the outstanding debt.

The offer expires October 29, the deadline to vote on the Spyglass Prepackaged Plan.