Icahn extends $7-per-share offer for Lions Gate for 10 days
By APFriday, April 30, 2010
Icahn extends $7-per-share offer for Lions Gate
LOS ANGELES — Activist investor Carl Icahn has extended his offer to buy outstanding shares in Lions Gate Entertainment Corp. for $7 apiece for another 10 days.
The new deadline for shareholders to tender their shares to Icahn ends just before midnight Eastern time on May 10. The previous deadline was Friday.
Lions Gate has said Icahn’s offer is too low and opposes his bid for control. Icahn currently holds 19 percent of Lions Gate shares.
Icahn on Friday said 6.6 million shares, or about 5.6 percent of the outstanding shares, had been tendered so far.
That would take his stake above the 20 percent that Lions Gate has said would trigger change of control provisions that could cause it to default on a line of credit.
The new deadline comes two days before the Vancouver-based movie studio plans to hold a vote on a shareholders rights plan that would prevent a hostile takeover.
That plan was voided by British Columbia securities regulators this week but Lions Gate has applied to appeal the ruling.
