Carl Icahn Spotlights Lionsgate SEC Charges in eBay Shareholder Appeal
The activist shareholder referred to "Liar Gate" when talking about the mini-studio recently paying a $7.5 million fine for wrongful investor disclosures.
TORONTO -- Carl Icahn couldn’t resist a gibe at Lionsgate and its recent Securities and Exchange Commission charges in his latest war of words with eBay management.
Taking to his Shareholders’ Square Table website, the activist billionaire referred to a ‘Liar Gate’ affair where Lionsgate paid $7.5 million and admitted wrongdoing for failing to tell investors about a key strategy to thwart Icahn in a 2010 takeover fight.
“You’re not supposed to lie about what you’re doing in your disclosure!” Icahn wrote in his blog.
A July 20, 2010, debt-for-equity transaction with major Lionsgate shareholder Mark Rachesky eventually sank Icahn’s proxy fight with the Vancouver-based mini-studio.
The transaction gave Rachesky, a management ally, a key voting block that was used to defeat Icahn at the company’s December 2010 annual shareholders meeting.
“Liar Gate drives home the lesson that if stockholders want the best from and for the companies they own, they cannot just sit back and let self-interested corporate bureaucrats make decisions based on the counsel of advisors who have few incentives to look out for stockholders and cannot always be relied upon to bring proper ‘adult supervision’ to the board room,” Icahn stated.
As at Lionsgate, where Icahn failed to shake up senior management with a proxy fight, the legendary investor has urged eBay’s management and board of directors to do his bidding and spin off the PayPal division.
eBay management on Tuesday told investors that a stand-alone PayPal would not serve shareholder interests.