Lionsgate Blasts Image Stock Offerings7 Sep, 2006 By: Erik Gruenwedel
Lionsgate is bemoaning recent common stock offerings by Image Entertainment, according to the latest filing with the Securities and Exchange Commission. The Santa Monica, Calif.-based mini-major said Chatsworth, Calif.-based Image, in separate deals had offered 8.4 million shares of common stock representing a 39% increase in the distributor's outstanding shares.
Lionsgate said the effect of the transactions “is to substantially dilute the interests of existing stockholders” prior to next month's annual shareholder meeting. Image has reiterated in previous filings that any recent common stock offerings would not be eligible to partake in the shareholder elections. Lionsgate is Image's second largest shareholder and is attempting to have shareholders elect its own slate of candidates to Image's board.