Lionsgate's reportedly pulling the plug on its efforts to buy MGM, leaving only Time Warner Inc. and Access Industries as bidders for the beleagurered studio.
The battle between Lionsgate and Carl Icahn has entered the trench warfare stage with both sides blasting each other on a daily basis.
Lionsgate issued the following response to Icahn's open letter:
As the battle for control of Lionsgate heats up, Carl Icahn issued an "open letter" to Lionsgate co-chairman and CEO Jon Feltheimer on Wednesday morning
In rejecting Carl Icahn's hostile takeover bid, Lionsgate's toppers are making the case that the minimajor is poised for serious growth if allowed to continue on its path.
Carl Icahn's decision to launch a hostile takeover of Lionsgate has raised doubts among some financial analysts, who question whether his bid of $6 per share is sufficient.
Moody's Investors Service has warned that Carl Icahn's bid to boost his Lionsgate stake could hurt the minimajor's credit.
With Lionsgate pondering a possible binding offer for MGM this week, the mini-major's gearing up for a battle with Carl Icahn over the merits of such a deal.
Standard & Poor's has lowered the outlook on Lionsgate to "negative" in reaction to Carl Icahn's unsolicited tender offer to boost his stake from 19% to 29.9%.
Carl Icahn said Monday that he is not trying to take over Lionsgate.