Activist investor Carl Icahn has extended until Oct. 22 the deadline for shareholders of Lions Gate Entertainment Corp. to accept his buyout offer.
Before Wednesday’s market close, Icahn said the deadline has been extended from its most recent Aug. 25 date in order to give the Supreme Court of British Columbia time to hear a lawsuit he filed against the film and TV studio. He is protesting a debt-for-equity swap by the company last month that diluted his stake and increased that of a company-friendly board member. Lions Gate’s corporate headquarters are in Vancouver, British Columbia, although its studio and much of its operations are in Santa Monica.
An affiliate of board member Mark Rachesky's MHR Fund Management, Lions Gate’s second largest shareholder, was able to increase his stake in the company from 19.6 percent to nearly 23 percent. Rachesky generally has been supportive of management over the years.
Icahn is still the largest single shareholder but his stake was reduced from roughly 33.5 percent from 37.9 percent after the deal.
Icahn in the Wednesday announcement admitted that no additional shares from other shareholders have been tendered in his latest $6.50-per-share offer, which is 50 cents lower than a bid that expired in June.
Lions Gate shares closed down 23 cents, or 3.5 percent, to $6.37 on the New York Stock Exchange.
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