Icahn-Lionsgate truce expires

No word from either party on their next moves

TORONTO -- Carl Icahn has made billions over the decades for his shareholders by reducing managerial slack.

So if the corporate raider and Lionsgate were in the mood for further compromise Monday as their temporary truce was set to lapse at 9 p.m., they weren't showing it.

The long story short: There was no public word Monday from either party on their next moves, and the betting is the current ceasefire will either be extended into Tuesday, possibly without comment, or is a respite, with war to spiral again.

Icahn, who agreed to back off on his hostile bid for control of Vancouver-based Lionsgate 10 days ago to jointly work on M&A deals, could renew hostilities by launching a new tender offer and by putting up a slate of directors for a proxy fight at the mini-studio's upcoming shareholder meeting.

Icahn, who has a near-38% in Lionsgate, since July 9 has lent an ear to senior management's case for possible acquisitions, including a run at an ailing MGM now being auctioned off.

The temporary truce could also provide a prelude to a final settlement between Icahn and Lionsgate, to include board representation and seats, including one for his son, Brett Icahn, and possibly Mark Cuban, who earlier tendered a 5% stake in Lionsgate to the elder Icahn.

Yet another scenario would see Lionsgate's temporary compromise with its largest shareholder end, and the mini-studio be compelled as per-agreement to publicly reveal all the insider information it has shared with Icahn.

That would allow Icahn to resume his aggressive campaign against Lionsgate's corporate strategy.

Shares in Lionsgate ended trading Monday on the New York Stock Exchange down 6 cents to $6.03 per share.