Image Seeks Better Lions Gate Offer20 Oct, 2005 By: Erik Gruenwedel
The special committee created by the board of directors from Image Entertainment to analyze Lions Gate Entertainment's unsolicited $90 million acquisition offer has requested a revised bid from the studio that “better reflects the value of Image.”
"After determining the original offer from Lions Gate was below what we would find acceptable for Image's stockholders, the special committee has been focusing its efforts on assisting Lions Gate to secure the additional documentation and information needed to prepare a revised proposal," said Ira Epstein, chairman of the special committee. "We are working diligently to facilitate this process and are now awaiting Lions Gate's response, which we have requested be delivered no later than October 31, 2005."
A potential deal appeared probable Sept. 30 when Lions Gate signed a confidentiality agreement as part of its due diligence of Image's finances.
Following a formal presentation Oct. 14 by Image senior management to Lions Gate senior management, the special committee submitted its request for a superior offer.
A Lions Gate representative was not immediately available for comment.