Lions Gate Rejects Carl Icahn’s Hostile Bid

Lions Gate Entertainment Corp. this week rejected a hostile takeover bid from investor Carl Icahn.
Lions Gate Rejects Carl Icahn’s Hostile Bid
3/24/2010
Updated:
3/24/2010
Santa Monica, Calif.-based Lions Gate Entertainment Corp. this week rejected a hostile takeover bid from investor Carl Icahn to take control of the movie and television film studio.

Icahn, who currently owns nearly 19 percent of the company, tried to purchase the rest of the company’s shares in a $6 per share offer. Lions Gate’s board unanimously rejected the bid.

“We believe nothing has changed—the offer remains financially inadequate and still does not reflect the full value of Lions Gate shares,” Lions Gate CEO Jon Feltheimer said in a statement.

The offer, made on Tuesday, comes a day after the studio submitted a buyout offer to take over the struggling MGM.

Lions Gate reported revenues of $1.5 billion and a net loss of $163 million in 2009.