Carl Icahn has extended his $7.50 a share hostile tender offer for Lionsgate for 10 days until Dec. 2.
Offer had been set to expire Monday and was extended after the stock market closed without elaboration by Icahn, who owns 33% of the mini-major.
The stock, which hit a two-year high of $7.65 on Oct. 15, was off 7¢ to $7.37 a share in trading on the New York Stock Exchange.
The offer expires on the same day on which MGM’s expected to receive confirmation of its bankruptcy plan. Icahn, who owns 18% of MGM’s debt, agreed to support MGM’s bankruptcy plan three weeks ago after its management agreed to exclude the Spyglass Entertainment library from the transaction and to give Icahn a seat on the new MGM board, along with the promise of “good faith” negotiations about a merger with Lionsgate.
Icahn has complained repeatedly about what he perceives as overspending by Lionsgate and has said he plans to launch a proxy fight for control of the board. Lionsgate execs have responded by saying that it has continued to grow, has kept a tight rein on costs and has improved its balance sheet.
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Lionsgate has set its annual meeting for Dec. 14, and management has announced its 12-member slate — the same as the current board except that Brian V. Tobin’s slot will be filled by Frank Giustra, who founded Lionsgate in 1997 and served as chairman until 2003.