Battle Continues Between Lionsgate, Icahn

NEW YORK: Carl Icahn has extended the deadline on his $7-per share offer for Lionsgate stock until 8 p.m. New York time on May 21, after less than 6.5 percent of outstanding shares were tendered as of yesterday.

In a statement yesterday, the independent studio said that its shareholders have "demonstrated that they believe the Icahn Group’s offer is inadequate and does not reflect the value of their investment. Lionsgate appreciates the support of its shareholders and encourages all of its shareholders to continue to reject the Icahn Group’s offer by NOT tendering their shares, and for those who have, to withdraw them. The company’s board of directors believes that the Icahn Group’s offer is financially inadequate, opportunistic and coercive and is not in the best interest of Lionsgate, its shareholders or other stakeholders."

Lionsgate had attempted to instate a "poison pill" defense to fend off a hostile takeover from Icahn, but the British Columbia Securities Commission (BCSC) nixed the move. Nonetheless, the studio’s shareholders are due to vote on the "shareholder rights plan" tomorrow. A statement from Icahn Group said: "While it is our firm belief that this vote has now been rendered totally meaningless, we nevertheless urge all shareholders to send a message to Lionsgate by voting against the Poison Pill."