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BREAKING NEWS! The studio just filed a 14D-9 a few minutes ago announcing that “settlement discussions” with Carl Icahn have begun. A sources tells me that the corporate raider/shareholder activist came to Lionsgate “and wanted to talk. LG has a fiduciary responsibility to listen. He is their second largest shareholder and they will listen. No guarantees that this will lead to an actual settlement.”
Icahn’s $7 a share offer is still out there until May 21st. Should it fail, and it probably will, Icahn has said he’ll “probably” wage a proxy fight for Lionsgate. That will be expensive for him, and destabilizing for the studio. On the other hand, Lionsgate toppers Jon Feltheimer and Michael Burns find their hands tied against Icahn’s hostile takeover attempt. Both a British Columbia regulatory commission as well as a British Columbia Appeals Court have ruled that the studio can’t use a poison pill defense. Nevertheless, Lionsgate called a special meeting of stockholders and went forward with ratification of its so-called “Shareholder Rights Plan” — no matter how meaningless.
Editor-in-Chief Nikki Finke - tip her here.
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SettLement discussion?
What exactly does that mean? Are they going to buy Icahn out?
Are they going to sell the studio to Icahn?
Please advise.
Any settlement depends on what Icahn really wants and what the management is willing to do to get him to stop fighting.
They could offer to buy out his shares for cash.
They could offer him a spot on their board, which they so far denied him and more say in the running of the company.
They could throw up their hands in surrender, and negotiate a deal where the management can keep their jobs with an Icahn owned Lionsgate.
This could go anywhere.
Settlement means Brett Icahn gets a board seat, Rashesky gets pissed off and all is well with the world.
Based on the fact LionsGate just reported to the SEC they have $16 million set aside for executive severence should new management find them not fit for their jobs, it seems like LionsGate doesn’t know what to do at this point. Hopefully they can come to terms with Icahn and just give his son money to make whatever movie he wants without ruining one of the best independent studios around.
Someone should ask Icahn if LionsGate is such a mess up right now why does he want to own it? It’s the fact that LionsGate is a successful, yet undervalued, company that makes him want it for his son. Otherwise he could just go and by Overture Films & Anchor Bay from Starz/Liberty Media for $100 million, less than the LionsGate deal is going to cost him. Hopefully LionsGate is trying to buy out his shares, but only time will tell.
Hi,
I’m the one that informed you guys about Icahn’s ” hostile takeover ” style…
I have spoken with a few of my ” business men ” friends here in N.Y about this and they all said Icahn will destroy the company because he will not know what to do with it, plus he is in his eighties and probably bored out of his mind is why he’s fixating on this deal!
It doesn’t matter what the stock market say about Lionsgate, right now a lot of companies are not high on the stock market. People seem to be buying a lot of tech and oil, and starting to dip into entertainment a little. Lionsgate is a FILM COMPANY and it does a good job of making good movies! Lionsgate should not let Icahn manipulate them by using their stock numbers to take over the company! He wants to remove the management so he can control and run it, but the problem is he has never been a film maker and he will destroy the whole company! If you are not a hair dresser by trade, you should not pretend, walk into a top salon and demand to cut people’s hair, you will get sued for f***ing their hair up!!! You get my point! Icahn is only using the stock numbers as a business point of negotiation by making Lionsgate think that they have a lemon, when in fact it is a great company and its main focus is not about the stock market, but making profitable movies!! He is just doing that to make them feel bad and low, and if they believe it then he wins and ” steal ” the company from them.
As far as the settlement talk, they should just listen and continue on with their original plans and keep ALL things the same, and go back to focusing on making movies and ignore him! he is crazy, greedy, and bored!! Lionsgate cannot let Icahn have the 50 % shares, because he will destroy the company! He is not a film maker and never will be one! As far as his grandson or son that wants to make movies, Icahn has so much money they can independently produce them on their own without getting Lionsgate involved. People produce their own indie films all the time! So I would not believe any excuses he gives….It is a suicidal move if Lionsgate believe him and let him get deeper into the company! Remember I warned you!
Thanks for the info.
Here’s an idea: if the lionsgate board let’s go of the company & turns it over to Icahn have them go to MGM & help make the lion roar.
They are looking for someone to run it…,..
this means Lion gates board and stock holders are at the end game and run out of ways to try and stop carl so they are either going to make him an offer to go away by buying hm out and giving him a board seat. or lion gate is going to be calling Carl Ican boss. either way Carl is one step closer to getting what he is after