Icahn boosts stake in Lions Gate to 32 percent, still short of taking over studio
By APThursday, June 17, 2010
Icahn boosts stake in Lions Gate to 32 percent
NEW YORK — Billionaire investor Carl Icahn says he has boosted his stake in Lions Gate Entertainment to just under 32 percent as he tries to take over the movie studio.
He is still short of a controling interest, though investors have two weeks to accept his $7-per-share offer.
Icahn says shareholders tendered 15.6 million shares by his initial Wednesday deadline. That brings his stake to 31.8 percent, up from 18.6 percent.
Lions Gate, which has resisted Icahn’s bid, is declaring victory, noting most shareholders have held out.
The company also says it is close to getting a waiver from lenders to make sure Icahn’s investment doesn’t trigger a default. Its credit agreements will technically be violated if any one investor has more than 20 percent of its shares.
