Lionsgate to Review Icahn's Stock Purchase Bid1 Mar, 2010 By: Erik Gruenwedel
As expected, Lionsgate March 1 said its board of directors will formally review an offer by activist investor Carl Icahn to purchase more than 13 million shares of common stock for $6 per share.
Icahn, who made the offer last month, would hold nearly 30% of the Santa Monica, Calif.-based mini-major if approved by the board.
Analysts contend New York-based Icahn’s actions are typical of his operational style, which both supports current management while at the same time turning the screws on them.
Icahn, who recently vacated his board seat with Blockbuster, purchased stock in the Santa Monica, Calif.-based Lionsgate last spring and summer, while at the same time waging a fiscal public battle to exert greater influence.
Lionsgate posted a loss of $65.5 million in its most recent quarter, despite strong results in home entertainment, including DVD catalog.
Lionsgate shares declined 7 cents to $5.38 per share in mid-morning trading.