Lion’s Gate Pressures Image Ent., Again

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Lion’s Gate Entertainment Corp. on Tuesday sent a letter to Image Entertainment Inc. shareholders urging them to replace the company’s current board with six Lion’s Gate candidates.


In the letter, Canadian-based Lion’s Gate, which has its TV operation in Santa Monica, said Image’s poor stock price, sluggish financial performance and failed management strategy are unacceptable. Lion’s Gate is the second largest shareholder in the Chatsworth-based DVD distributor with more than 4 million shares.


Image has already nixed one buyout offer from Lion’s Gate, saying it was too low, and it did not respond to an offer earlier this year for $4 per share.


Image shareholders are set to meet on Oct. 10. Shares of Lion’s Gate slipped 2 cents to $9.27 in midday trading on the New York Stock Exchange, while Image shares dipped 6 cents to $3.59.

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