Icahn extends Lionsgate offer to June 16
Studio advises shareholders to ignore Icahn's tender offerTORONTO -- Carl Icahn and Lionsgate on Tuesday continued an increasingly bizarre courting ritual with the activist shareholder extending his offer to June 16 and the mini-studio telling shareholders to ignore his latest overture.
After Vancouver-based Lionsgate signaled in May that it may be prepared to talk settlement terms with Icahn, the company's second-largest investor has waived his minimum tender condition for purchasing all outstanding shares at $7 a piece to get him to majority control.
Icahn in a statement also accused Lionsgate of continuing to pursue a poison pill defense after it was earlier slapped down by British Columbia securities regulators.
"We continue to be concerned that Lionsgate...may engage in an inappropriate dilutive defensive acquisition or other transaction in an attempt to thwart our offer," he insisted.
As it gets set to release its latest financial results after the market closes Tuesday, Lionsgate recommended shareholders take no action in response to Icahn's latest tender offer terms.
Lionsgate said just under 4% of shareholders tendered into Icahn's previous offer that expired on May 31, indicating sliding support at the current $7 bid price.
"Lionsgate appreciates the continued support of its shareholders and notes that, while there is no need for shareholders to take action at this time, those shareholders who have tendered into the offer can still withdraw their shares," the company said in a statement.
Lionsgate senior management will also hold an analyst call on Wednesday morning.