Icahn Seeks to Buy $325M Lionsgate Debt

12 Mar, 2009 By: Erik Gruenwedel

Lionsgate

Less than 24 hours after ending discussions to place representatives on Lionsgate’s board, activist investor Carl Icahn March 12 issued a statement after the market close indicating a desire to acquire the Santa Monica, Calif.-based mini-major’s long-term debt.

Icahn said he would make an offer to acquire $150 million of convertible senior subordinated notes due 2024 and $175 million of convertible senior subordinated notes due 2025, according to The Associated Press.

Rumors suggest Icahn’s move is a precursor to a possible hostile takeover or forced sale of Lionsgate, which lost more than $93 million in the most recent quarter.

A Lionsgate representative was not immediately available for comment.