Carl Icahn is trying to gobble up even more of Lions Gate, the movie studio that brought us Precious.
The hedge fund manager is offering LGF $6 per share in cash for up to 13.2 million shares. His stake in the company would reach 30%.
Here’s more from the Associated Press:
LOS ANGELES — Activist shareholder Carl Icahn wants to boost his stake in movie studio Lions Gate Entertainment Corp. with an offer worth as much as $79 million.
Icahn is offering $6 per share in cash for up to 13.2 million shares in an effort to raise his stake in the company to nearly 30 per cent.
Shares rose 6.5 per cent to $5.57 on the news.
Icahn already controls about 18.9 per cent of the Vancouver-based company.
Lions Gate has said if any one shareholder increases his stake above 20 per cent, it could trigger a default on its credit facility.
But Icahn said in a statement such a default could be avoided through a waiver by the lenders or through prepayment of the debt.
Lions Gate said it would make a recommendation to shareholders soon.
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