Activist shareholder Carl Icahn wants to boost his stake in movie studio Lions Gate Entertainment Corp. with an offer worth as much as $79 million.
Icahn is offering $6 per share in cash for up to 13.2 million shares in an effort to raise his stake in the company to nearly 30 percent.
Shares rose 6.5 percent to $5.57 on the news.
Icahn already controls about 18.9 percent of the Vancouver-based company.
Lions Gate has said if any one shareholder increases his stake above 20 percent, it could trigger a default on its credit facility.
But Icahn said in a statement such a default could be avoided through a waiver by the lenders or through prepayment of the debt.
Lions Gate said it would make a recommendation to shareholders soon.
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