Lionsgate: Icahn will not get control

Activist shareholder has 31.8% stake

TORONTO -- Carl Icahn is Lionsgate's largest shareholder with a 31.8% stake, even as the mini-studio on Thursday declared the activist shareholder's bid to take control of the company a failure, at least so far.

"We remain confident that Carl Icahn will not obtain control of Lionsgate through its tender offer," Lionsgate said after 13.2% of company shareholders tendered into the $7-per-share offer from the Icahn Group.

Icahn put the value of Lionsgate shares tendered before the June 16 deadline at about $109.2 million, and added he will stop mopping up remaining company shares during a subsequent offering period on June 30.

The next step in Icahn's escalating feud with Lionsgate is a planned proxy fight at the company's upcoming shareholders meeting, likely in September in Toronto.

And Icahn's stake in Vancouver-based Lionsgate surpassing 20% puts the mini-studio potentially in default under its credit lines.

Lionsgate is negotiating with lenders for a waiver or amendment under its debt covenants.

"Based on conversations to date, Lionsgate is highly confident that it will obtain that waiver or amendment shortly," the company said Thursday.