You will be redirected back to your article in seconds

Lionsgate, Icahn ramp up battle

Both sides campaign over 'poison pill' provision

Lionsgate and Carl Icahn are ramping up their battle for control of the minimajor, with both sides campaigning over Lionsgate’s proposed “poison pill” provision.

Lionsgate announced Friday that independent proxy advisory firm Glass Lewis & Co had recommended that Lionsgate shareholders vote for what the company’s dubbed its “shareholder rights plan.”

Separately, Icahn’s said in a regulatory filing that the poison pill would “frustrate” the ability of Lionsgate shareholders to decide whether to accept Icahn’s offer.

The plan, to be voted on at a May 4 meeting in Toronto, would have the effect of diluting Icahn’s ownership of Lionsgate — currently at 19% — if his holdings top 20%.

Icahn, frustrated by a stagnant stock price, is attempting to buy the 81% of Lionsgate that he doesn’t own at $6 a share via a tender offer that expires April 30. Shares were up a penny to $6.20 in mid-session trading Friday.

Icahn has portrayed the poison pill as “totalitarian.” Lionsgate has repeatedly called Icahn’s offer “financially inadequate and coercive.”

The Glass Lewis report said, “In this case, although the Rights Plan does not contain qualifying offer provisions, in our view, the permitted bid provisions adequately ensure that shareholders are able to consider a reasonable offer for the company. Further, we note that the Rights Plan will expire in three years. In light of these shareholder-friendly provisions, we believe that the Rights Plan may serve to protect Shareholder interests in the event that a takeover bid does not reflect the full value of the company’s shares or is coercive.”

Icahn, in a filing Thursday with the Securities and Exchange Commission, noted that Lionsgate had never adopted a shareholder rights plan.

“The Icahn Group believes that the Poison Pill seriously prejudices the interests of Lionsgate shareholders by precluding them from exercising their fundamental right to decide whether to tender their Lionsgate shares to the Icahn Offer,” it added.

Lionsgate contended in its announcment that the plan is intended to protect Lionsgate and its shareholders from “unfair and coercive” attempts to take over the company. It also said that the plan “enables Lionsgate to continue to execute on its current plans to build shareholder value.”

Shares of Lionsgate – home to “Precious” and the Saw and Tyler Perry franchises along with “Mad Men” and “Weeds” — have been depressed partly by uneven performance of its film slate. “Tyler Perry’s Why Did I Get Married Too” has performed respectably and topped $36 million in domestic grosses in its first six days.

More Film

  • Deadpool

    'Deadpool 2' on Track for Massive $150 Million Debut

    Lionsgate and Carl Icahn are ramping up their battle for control of the minimajor, with both sides campaigning over Lionsgate’s proposed “poison pill” provision. Lionsgate announced Friday that independent proxy advisory firm Glass Lewis & Co had recommended that Lionsgate shareholders vote for what the company’s dubbed its “shareholder rights plan.” Separately, Icahn’s said in […]

  • A24 Plants Oscar Season Seeds for

    A24 Plants Oscar Season Seeds for Toni Collette in Horrifying 'Hereditary' (EXCLUSIVE)

    Lionsgate and Carl Icahn are ramping up their battle for control of the minimajor, with both sides campaigning over Lionsgate’s proposed “poison pill” provision. Lionsgate announced Friday that independent proxy advisory firm Glass Lewis & Co had recommended that Lionsgate shareholders vote for what the company’s dubbed its “shareholder rights plan.” Separately, Icahn’s said in […]

  • Newport Beach Film Festival Offers Film

    Newport Beach Film Festival Offers Wealth of Premieres, Retrospectives and Seminars

    Lionsgate and Carl Icahn are ramping up their battle for control of the minimajor, with both sides campaigning over Lionsgate’s proposed “poison pill” provision. Lionsgate announced Friday that independent proxy advisory firm Glass Lewis & Co had recommended that Lionsgate shareholders vote for what the company’s dubbed its “shareholder rights plan.” Separately, Icahn’s said in […]

  • Alejandra Paulín, Maru Garzón Named Joint

    Alejandra Paulín, Maru Garzón Named Joint Heads of Mexico’s Los Cabos Film Festival (EXCLUSIVE)

    Lionsgate and Carl Icahn are ramping up their battle for control of the minimajor, with both sides campaigning over Lionsgate’s proposed “poison pill” provision. Lionsgate announced Friday that independent proxy advisory firm Glass Lewis & Co had recommended that Lionsgate shareholders vote for what the company’s dubbed its “shareholder rights plan.” Separately, Icahn’s said in […]

  • Newport Beach Film Festival to Show

    Newport Beach Film Festival Puts Focus on Culinary Cinema

    Lionsgate and Carl Icahn are ramping up their battle for control of the minimajor, with both sides campaigning over Lionsgate’s proposed “poison pill” provision. Lionsgate announced Friday that independent proxy advisory firm Glass Lewis & Co had recommended that Lionsgate shareholders vote for what the company’s dubbed its “shareholder rights plan.” Separately, Icahn’s said in […]

  • 'Dealt,' Documentary About Richard Turner, Inspires

    Blind Card Magician Richard Turner's Life Story Being Made Into Feature Film (EXCLUSIVE)

    Lionsgate and Carl Icahn are ramping up their battle for control of the minimajor, with both sides campaigning over Lionsgate’s proposed “poison pill” provision. Lionsgate announced Friday that independent proxy advisory firm Glass Lewis & Co had recommended that Lionsgate shareholders vote for what the company’s dubbed its “shareholder rights plan.” Separately, Icahn’s said in […]

  • Naomi Watts Boss Level

    Naomi Watts, Sophia Lillis to Star in Claire McCarthy's 'Burning Season'

    Lionsgate and Carl Icahn are ramping up their battle for control of the minimajor, with both sides campaigning over Lionsgate’s proposed “poison pill” provision. Lionsgate announced Friday that independent proxy advisory firm Glass Lewis & Co had recommended that Lionsgate shareholders vote for what the company’s dubbed its “shareholder rights plan.” Separately, Icahn’s said in […]

More From Our Brands

Access exclusive content