Lions Gate Entertainment Corp. said its directors have decided that the latest $7-per-share tender offer from activist investor Carl Icahn is still inadequate and not in the best interests of the company, its shareholders and other stakeholders.

The board of the film and TV studio urged shareholders to reject the Icahn Group's offer at a May 4 special meeting and not tender their shares.

"We believe that the offer pales in comparison to the value inherent in the world class platform we have established over the past 10 years,” said Chief Executive Officer Jon Feltheimer in a statement.

Icahn on Feb. 16 made an unsolicited tender offer to acquire up to 13.2 million common shares for $6 per share in cash, and raised his offer earlier this month after the board’s first rejection. Were Icahn successful, his stake would increase to 29.9 percent of the outstanding common shares.

Lions Gate, which produces and distributes films and TV shows and owns the TV Guide cable channel, in the past has rebuffed the billionaire activist investor’s overtures. Lions Gate’s corporate offices are in Vancouver, British Columbia, but its studio and much of its operations are in Santa Monica.

Icahn, through his Icahn Group, now holds 18.9 percent of Lions Gate’s shares. He has been adding to his position since late 2008. His earlier attempts to gain a seat on Lions Gate’s board have fallen short.

Shares closed up 2 cents, or less than 1 percent, to $6.89 on the New York Stock Exchange.

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