Icahn warns of lowered Lionsgate value
Says tender offer expiration will lead to shares lower than $7TORONTO -- Carl Icahn on Monday urged Lionsgate shareholders to get in while the going's good, because stock in the mini-studio will turn down once his takeover bid wraps on Wednesday.
"I firmly believe that after the expiration of my tender offer -- which will not be extended -- the price that Lionsgate will trade at will be lower than $7 per share," the activist shareholder said ahead of a June 30 deadline for his stock offer.
Shares in Vancouver-based Lionsgate traded 12 cents, or 1.65% lower at $7.15 on the New York Stock Exchange Monday morning, after a buying spurt Friday as the mini-studio joined the Russell 2000 Index.
"In light of...the fact that there are no longer large purchases from index funds related to the Russell Index, I cannot help but wonder who will purchase stock when my tender expires on Wednesday," Icahn questioned in his latest appeal to company shareholders.
Lionsgate's largest shareholder also took yet another opportunity to disparage senior management for producing big-budget movies, when the future was in distribution.
"Lionsgate must stop producing big budget films and must stop wasting time trying to acquire another film library," Icahn said in apparent reference to on-again, off-again merger talks between Lionsgate and MGM reassembling.
"Tying two one-legged men together does not mean they will run faster -- in fact it will slow them down," he added.