It seems Lions Gate Entertainment roused a dragon when the company rejected Carl Icahn’s request to seat his hand-picked board members.

After spending four years as a relatively passive investor in the company, Icahn — who holds about 14 percent of Lions Gate’s shares, made a tender offer on Friday to buy 325,000 convertible bonds for more than $240 million. If he is able to buy all the remaining bonds and convert them into common shares — debt holders have until April 20 to accept the offer — he would own about 42 million shares, or just under 30 percent of the company.

Icahn has complained about Lions Gate’s decision to use revolving loans to buy the TV Guide network for $255 million and its high overhead costs. He is not, however, pushing for a sale at the moment. Any attempt to sell the company or elect a new board could be difficult — Lions Gate is registered as a Canadian company and Canadians must fill at least 50 percent of its board seats. The company’s debt covenants would also be triggered if Icahn or other investors accumulated more than 20 percent of the stock.

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