Carl Icahn Extends Offer for Lionsgate for Fifth Time

5:30 AM PST 12/01/2010 by Etan Vlessing

The investor also made his prolonged bid conditional on the New York State Supreme Court granting an injunction against rival shareholder Mark Rachesky.

 

Carl Icahn has extended his unsolicited tender to purchase all stock in Lionsgate Entertainment at $7.50 per-share to Dec. 10.

Icahn also made his prolonged bid conditional on the New York State Supreme Court granting by Dec. 10 a preliminary injunction against rival Lionsgate shareholder Mark Rachesky voting at a Dec. 14 shareholders meeting in Los Angeles around 16 million shares he recently secured as part of a debt-for-equity swap.

The billionaire investor also waived two earlier conditions to the offer, one requiring that at least 50.1% of Lionsgate shares be tendered to Icahn and another requiring that the mini-studio rescind a July 20 deal to give Rachesky an additional 16 million shares, while reducing Icahn's own stake.

The New York State Supreme Court is scheduled to hear on Dec. 3 Icahn's motion for Rachesky's newly acquired shares to be denied status in any election of Lionsgate directors or other shareholder votes.

Icahn, who holds a near-one third stake in Lionsgate, has promised a proxy fight at the mini-studio's Dec. 14 shareholders meeting as part of along-standing bid to secure control of the company.

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