Lionsgate Delays Secondary Offering of Carl Icahn Shares (Report)

9:18 AM PST 10/04/2011 by Etan Vlessing
Billy Farrell/PatrickMcMullan.com/Sipa Press

Market volatility has led the mini-major to put a secondary sale of shares formerly held by the billionaire investor on ice.

TORONTO -- Lionsgate Entertainment has delayed a secondary offering of shares in the mini-major formerly held by Carl Icahn due to adverse market conditions, Reuters reported Tuesday.

The original plan was to sell up to 44,161,971 shares in Lionsgate as part of a settlement with Icahn that would see the billionaire investor and son Brett Icahn unload their 33% stake for $7.00 a share and clear out after a bitterly-fought proxy battle.

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Lionsgate vice-chairman Mark Rachesky acquired around 11 million company shares from Icahn, as did the mini-major’s management, led by CEO Jon Feltheimer.

The remaining 19.2 million were to be unloaded as part of a secondary offering, which has now been put on hold due to market volatility, Reuters reported, citing unnamed sources.

A Lionsgate spokesman declined comment on the media report.

Shares in Lionsgate were down by 5 cents, or just under 1%, to $6.89 during noon hour trading on the New York Stock Exchange.

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