Image wants a better deal

DVD co. unimpressed with Lions Gate's offer

If Lions Gate wants to close a deal for DVD company Image Entertainment, it’s going to have to cough up some more coin.

That was the message in a public filing by Image Thursday, wherein the Chatsworth-based producer and distributor of home entertainment titles said it remains unimpressed by Lions Gate’s stock-based acquisition offer and wants a richer deal by Oct. 31.

Last month, Lions Gate revealed it has bought about 19% of Image’s outstanding shares and made an all-stock offer worth between $81.9 million and $90.6 million for the rest of the company.

At the time, Image CEO Martin Greenwald said he thought the company was worth more.

That feeling has surely intensified in the past month, as Lions Gate stock has fallen nearly 18% in value. At Thursday’s closing price, the offer would be worth approximately $67.5 million-$74 million.

It’s not certain whether Lions Gate will submit an increased bid, but a source close to the negotiations said if one does take place, it would likely consist of more cash and less of the indie studio’s unstable stock.

A Lions Gate rep declined to comment.

Earlier this week, studio closed a deal to buy British distrib Redbus for $35 million in cash and stock.

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