Carl Icahn on Friday said he will again extend his offer to buy Lions Gate Entertainment Corp., this time until June 1, after the latest deadline arrived with too few shareholders accepting his tender offer.
The billionaire and activist investor owns almost 19 percent of Lions Gate shares, and has been in a battle for control of the boutique movie and TV studio for several months. Lions Gate has corporate headquarters in Vancouver, B.C. but operates out of Santa Monica.
Icahn is conditioning his buyout bid on obtaining at least 50.1 percent of the stock in the company. As of this morning, Icahn said 4.6 million Lions Gate shares had been tendered, less than 4 percent of the company's nearly 118 million outstanding shares. The deadline was end of today.
The company has a “poison-pill” shareholders rights plan in place that would prevent any investor from taking a stake greater than 20 percent. But Canadian courts have ruled the plan is illegal. Icahn wants to increase his stake from 19 percent to nearly 30 percent.
Shares were down 6 cents, or less than one percent, to $6.78 in midday trading on the New York Stock Exchange.
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