Lionsgate board rejects Icahn's latest offer
Was 'not in the best interests' of company, shareholdersTORONTO – In what's becoming a well-honed drill, Lionsgate on Monday said its board of directors have rejected Carl Icahn's latest unsolicited tender offer for all outstanding shares in Lionsgate at $6.50 each.
As with its rejection of Icahn's earlier $7.00 hostile bid, the Lionsgate board deemed the latest offer "not in the best interests of Lionsgate and its shareholders," who should in turn not tender their shares to the activist shareholder.
The grounds for the board recommendation were contained in Lionsgate's latest 14D-9 filing to the Securities and Exchange Commission.
The rejection is also the latest twist in a continuing battle for control of Vancouver-based Lionsgate that has seen the British Columbia Securities Commission last week reject a bid by Icahn to void a move by the mini-studio to issue new shares to company shareholder Mark Rachesky to increase his own stake and dilute Icahn's to around 33%.
Icahn last week also filed a lawsuit in the New York State Supreme Court to rescind the debt-for-equity swap between Lionsgate and Rachesky.
Lionsgate's deal with Rachesky was made public after the end of a temporary ceasefire with Icahn, and the billionaire investor launching yet another tender offer for control of the company.