Icahn gets to 34% of Lionsgate shares

Analyst cuts Lionsgate rating from buy to hold

TORONTO -- Carl Icahn's stake in Lionsgate now stands at 33.9% after his $7.00 per-share tender offer expired Wednesday night.

Another 2.43 million shares, or 2.1% of outstanding stock, flowed to the Icahn Group during a subsequent offer period from June 16 to June 30.

Lionsgate in a statement thanked the 66% of company shareholders that rebuffed Icahn's bid for corporate control for supporting the Vancouver-based mini-studio and its current business strategy.

Icahn and his affiliates, which now hold just over 40 million of Lionsgate's common stock as the company's largest shareholder, have indicated the unsolicited tender offer is now finished, and will not be extended.

Where Icahn moves next in his battle with Lionsgate senior management is uncertain. He has promised a proxy fight at the movie and TV studio's upcoming annual shareholders meeting, likely in September.

More immediately, an end to Icahn's tender offer is expected to send Lionsgate shares southwards in price.

"Absent Icahn's tender offer we see more downside risk to the company's share price, and only marginal upside if his offer were to be raised," Jefferies & Co. analyst Brian Shipman said Thursday in a note to clients as he cut his Lionsgate rating from buy to hold.

Shares in Lionsgate edged higher Thursday morning, up 16 cents, or 2.2%, to $7.14 on the New York Stock Exchange.
comments powered by Disqus