Carl Icahn extends tender offer to June 1
Condemns Lionsgate's $16 million severance trustTORONTO -- Carl Icahn has extended its hostile tender offer for Liongate shares to June 1, without raising his $7.00 offer.
The move comes as support for unsolicited stock offer is apparently ebbing away.
The Icahn Group said 4.66 million shares, or 4% of outstanding stock, have so far been tendered and not withdrawn, down by around one-third from the 7.45 million shares, or 6.3% tendered by May 10.
The current tender offer was to have expired Friday (May 21).
Icahn used the extension to condemn Lionsgate's current management for earlier setting aside $16 million in a trust to provide severance payments to senior executives that are fired without cause should the mini-studio do a deal with the activist shareholder and offer him seats in the boardroom to end their feud.
"We believe this latest action, together with the board's failed and misguided attempts to implement a poison pill... shows just how far removed this board has become from its mission of holding management accountable and safeguarding the interests of shareholders," he said in a statement.
The introduction of the $16 million trust came as Lionsgate earlier said it was prepared to hold talks with Icahn to possibly settle their differences.
Lionsgate offered no official comment Friday on Icahn's third extension of his tender offer, and his latest salvo against senior management at the Vancouver-based company.
But privately, Lionsgate pointed to reduced support for the hostile takeover bid as Icahn failed to sweeten his offer to entice major stakeholders to his side.