Billionaire Icahn May Jump Into Hollywood Bidding War29 Nov, 2004 By: Kurt Indvik
Billionaire Carl Icahn may be entering the bidding game for Hollywood Entertainment, according to the Associated Press. Icahn's firms have reportedly purchased 5.1 million shares of Hollywood stock in the past two weeks, and Icahn now holds approximately 8.4 percent of Hollywood, according to the AP, which cites documents from the Securities and Exchange Commission.
Analysts quoted in the report also speculate that Icahn could be positioning himself to possibly profit from any acquisition of Hollywood that may be made in the near future — a maneuver he has executed in the past, buying large stakes in companies embroiled in takeover battles.
To date, buyout firm Leonard Green & Partners, in concert with Hollywood founder and chairman Mark Wattles, has offered to buy Hollywood Entertainment for $10.25 per share. Movie Gallery Inc. has made a formal acquisition offer, for an undisclosed price, for Hollywood after Blockbuster Inc.'s CEO John Antioco had publicly made an offer of $11.50 per share for the company, though reportedly no formal offer has yet been submitted by Blockbuster.
As of Monday morning, Hollywood shares were trading at $13.01, up from a Friday close of $12.88.