Tags: Carl | Icahn | Lions | Gate | Buyout

Icahn Extends Lions Gate Buyout Offer Again After Poor Response

Tuesday, 11 May 2010 08:28 AM

Billionaire shareholder Carl Icahn on Monday extended his buyout bid for Lions Gate Entertainment Corp. once more after only 6.5 percent of the niche movie studio's shareholders accepted his tender offer of $7 per share.

Icahn extended the offer from Monday to May 21. The offer already had been extended to Monday from April 30.

Icahn said at least 7.4 million shares were tendered on Monday.

On Wednesday, Canada-based Lions Gate will hold a special meeting of shareholders to ratify a plan designed to thwart hostile takeovers.

The meeting still is scheduled despite the British Columbia Court of Appeal's dismissal last week of an appeal by Lions Gate to restore the shareholder rights plan. The decision would stop the trading of any securities that would be issued under the plan, making it ineffective.

The company had urged investors not to accept Icahn's offer $7 per share offer, an increase from his previous $6-per-share bid, saying it's too low.

Icahn controls nearly 19 percent of Lions Gate's shares.

Shares of Lions Gate rose 35 cents, or 5.3 percent, to close Monday at $6.91.

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