Lionsgate up after Carl Icahn activity

Mark Rachesky eyes board seat

TORONTO -- Stock in Lionsgate continued its rise Thursday after activist shareholder Carl Icahn raised his stake yet again to 16.9%.

Lionsgate shares rose 7% to $5.61 on the New York Stock Exchange during mid-day trading following news that Icahn still has the Vancouver-based studio in his sights.

Icahn affiliates earlier told Canadian securities regulators that they had purchased 1.06 million Lionsgate shares for between $5.26 and $5.29 each.

Lionsgate's largest shareholder, Mark Rachesky, a former Carl Icahn investment strategist, holds a 20% stake in the studio and appears set to be named to the studio's boardroom.

Icahn also covets boardroom representation at Lionsgate, and is thought to be building his stake in the indie studio as a prelude to a possible proxy war.