Carl Icahn takes 9.2% stake in Lionsgate

Activist shareholder forced changes at Blockbuster

Carl Icahn, the corporate raider and activist shareholder who forced changes at Time Warner and Blockbuster, might have his sights set on Lionsgate.

According to a securities filing on Monday, Icahn, through a variety of his investment entities, has taken a 9.2% stake in Lionsgate by acquiring more than 4 million shares.

The filing says that Icahn or his representatives "have had discussions" with Lionsgate CEO Jon Feltheimer and vice chairman Michael Burns, though it doesn't say exactly what was discussed.

Apparently, though, the parties might "continue to have discussions" from time to time and Icahn might purchase more shares in the open market, or otherwise, "at any time."

The filing also said that Icahn acquired the stock "in the belief that the shares were undervalued."

Lionsgate shares had fallen 24% this month before rallying 6% on Monday. The stock jumped another 8% in the afterhours session when Icahn's purchase was publicly disclosed. As of Monday, Lionsgate's market capitalization was $865.1 million, and its enterprise value was $913.9 million.
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