Lionsgate, Icahn Call Truce

SANTA MONICA/NEW YORK: Carl Icahn and Lionsgate have agreed to a ten-day truce to discuss potential acquisition opportunities, pausing their very public battle over control of the independent studio.

The billionaire investor has been trying to take control of the company, recently wrapping a tender offer that upped his stake to 38 percent and announcing plans to wage a proxy war to replace the company’s board.

According to an SEC filing, Lionsgate executives are speaking to Icahn about potential merger or acquisition opportunities. (The studio is said to be interested in MGM and Summit Entertainment.) The truce began Friday and runs till July 19. In this period, Lionsgate has agreed to not engage in any transactions that would increase the company’s outstanding stock by more than 5 percent (and thereby dilute Icahn’s stake). Within one day of the ending of the truce (which could be extended), Lionsgate will publicly disclose all materials related to the discussions with Icahn.