Icahn Extends Lionsgate Tender

NEW YORK: Carl Icahn has again extended his $7-per-share tender offer for Lionsgate stock, with the deadline now set at 8 p.m. New York time on June 1.

The billionaire financier has been attempting a takeover of the independent studio and has taken issue with the company’s management. In announcing the extension of the tender offer, he noted: "We find reprehensible Lions Gate’s recent announcement regarding the board’s approval of the establishment of a trust that would hold approximately $16 million in cash to fund severance obligations that would purportedly be due to members of senior management should their employment be terminated without "cause" in connection with a "change in control". We believe this latest action, together with the board’s failed and misguided attempts to implement a poison pill and its reckless retention (at enormous expense to shareholders—with no discernible benefit) of no less than six professional advisory firms (two financial advisors, three law firms and a public relations firm) to defend against our offer, shows just how far removed this board has become from its mission of holding management accountable and safeguarding the interests of shareholders. The Icahn Group reserves all rights to challenge the propriety of the establishment of this trust as well as the propriety of the purported severance obligations and to bring any and all other claims that the Icahn Group may have against the board and management."

As of Friday noon, about 4.7 million shares had been tendered, about 4 percent of the total outstanding stock.