Shareholders urged to reject Icahn offer
Lionsgate reiterated that takeover bid is 'inadequate'TORONTO – Lionsgate on Friday urged shareholders yet again to rebuff Carl Icahn's unsolicited tender offer, now extended to June 16.
Vancouver-based Lionsgate, in an amended Schedule 14D-9 filed with U.S. securities regulators, reiterated that Icahn's $7.00 per share takeover bid is "financially inadequate and coercive."
The mini-studio also urged shareholders that have tendered their shares to the Icahn Group to withdraw them, and offered instructions on how to do so.
The latest missive to shareholders argued Lionsgate "continues to successfully execute its business strategy," as evidenced by its latest financial results unveiled earlier in the week (HR, June 1).
"Views of Wall Street analysts have also changed to reflect a higher value for Lionsgate, and the average price target of Wall Street analysts for Lionsgate shares as of June 3, 2010 is at a 26.4% premium to the Icahn Group's offer price of U.S.$7.00 per share," the company said in a statement.
The next move in the escalating battle between the mini-studio and Icahn, who holds a 19% stake in Lionsgate, is a threatened proxy fight at an upcoming annual shareholders meeting, likely in September around the time of the Toronto International Film Festival.