Investor's $7.50 per share deal to run through Nov. 22
Billionaire Carl Icahn has extended his hostile $7.50 a share tender offer for Lionsgate for another 10 days until Nov. 22.Icahn made the announcement Friday, when the offer was due to expire. Shares of Lionsgate closed up 12¢ to $7.33 Friday on the New York Stock Exchange. Earlier this week, Lionsgate management set its annual shareholders meeting for Dec. 14 in Los Angeles, triggering what’s expected to be a proxy fight, with Icahn and Lionsgate running yet-to-be-named competing slates for the 12 seats on the board of directors. Despite recent efforts to work with Lionsgate on merging with MGM, Icahn’s also continued to declare that he wants to oust Lionsgate management, headed by co-chairman and CEO Jon Feltheimer and vice chair Michael Burns. The billionaire, who owns 33.5% of Lionsgate, has complained repeatedly about what he perceives as overspending by the company. Lionsgate has responded by noting that it has continued to grow, has kept a tight rein on costs and has improved its balance sheet. Icahn is appealing a Nov. 1 decision in which the British Columbia Supreme Court ruled in favor of Lionsgate’s debt-for-equity transaction in July that diluted his stake to 33.5% from 38%. He’s also sued Lionsgate in New York over the transaction, while Lionsgate filed an unusual lawsuit against Icahn three weeks ago, accusing him of duplicity in trying to take over MGM. Burns told CNBC Wednesday that the major Lionsgate shareholders want the company to settle its long-running battle with Icahn but did not elaborate. Lionsgate on Tuesday reported a net loss of nearly $30 million for the quarter ended Sept. 30, in part because of actions taken to fend off Icahn.