Investor Carl Icahn on Thursday stood to gain negotiating power in his battle to control Lions Gate Entertainment Corp., after billionaire Mark Cuban expressed interest in tendering his shares in the studio.
If Cuban sells his 5.4 percent stake in Lions Gate to Icahn, then Icahn would become the largest shareholder of the Hollywood studio behind “Mad Men” and “Saw,” with about 28 percent of the company’s stock.
Cuban, who owns the National Basketball Association team Dallas Mavericks, told CNBC on Thursday that he expected to tender his shares to Icahn. With a sale, Icahn would cross a 20 percent ownership limit that could trigger a technical default in the company’s $340 million revolving bank loan facility from JP Morgan Chase & Co.
Analysts expect that Lions Gate would obtain a waiver, but it would be a hindrance for the company’s management.
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