The sharp elbowing between Lionsgate and Carl Icahn takes another turn in the courtroom. The Wall Street Journal reports that Lionsgate filed in court to force Icahn to disclose any confidential merger agreements he made with MGM. This continues Lionsgate’s assertion that Icahn was pushing for a merge between Lionsgate and MGM while lambasting Lionsgate management for exploring the same scenario. Lionsgate’s desire for transparency extended to an ask that Icahn fess up about a side deal he might have made with Mark Cuban to sell his stake. That info–which reportedly came from Girls Gone Wild kingpin Joe Francis–was refuted by Cuban, who told WSJ that if there was any questionable offer involved in the equation, it came when Lionsgate co-chairman Michael Burns made a third-party offer to buy his shares for more than whatever Icahn was willing to pay…
Christopher Tierney, the 31-year old actor/dancer who fell 30 feet and was badly hurt in a preview performance of Broadway’s Spider-Man: Turn Off The Dark, gave his first interview last night to Gotham’s WCBS-TV local news. Watch below as he describes an ordeal that included the following inventory of broken bones: 4 ribs, 3 vertebra, scapula, elbow, and the back of his head. It’s good to see Tierney moving around and even enthused about possibly returning to the show. But how’s that dancer’s body, full of screws and rods, going … Read More »
Carl Icahn has made another offer to MGM lenders in hopes of thwarting the prepackaged bankruptcy plan and Spyglass deal. He’s now offered to buy $1.6 billion in debt at a premium price of 53 cents on the dollar; last week, he offered to buy $963 million in debt. The offer expires Friday — the voting deadline for the bankruptcy/Spyglass plan that would put Gary Barber and Roger Birnbaum in charge. On Monday, Lionsgate sent a letter to MGM proposing that a Lionsgate-MGM merger, which Icahn now supports, could save about $100 million annually and increase revenues. If Icahn indeed manages to buy up the $1.6 billion, the total amount he would own would give him a majority of the debt. The Spyglass plan would give lenders 95% ownership of the company; a Lionsgate merger would give creditors a 55% equity stake.
Lionsgate is making its argument for a merger with hobbled studio MGM, a move that is supported by Carl Icahn, who has been trying to take over the mini-major while simultaneously buying up MGM debt. The timing is meant to provide an option for the current restructuring plan that will be voted on by MGM lenders this month. That plan would revive the Lion most likely as a production entity without distribution and marketing, headed by Spyglass chiefs Roger Birnbaum and Gary Barber. I’ve always thought the plan before creditors right now is an interim step, and that an alignment between the Lion and Lionsgate, or a studio like Warner Bros will happen down the road regardless, once the studio gets moving again on The Hobbit and James Bond. Here is Lionsgate’s release:
SANTA MONICA, CA, and VANCOUVER, BC, October 13, 2010 — Lionsgate (NYSE: LGF) (“the Company”), the leading next generation studio, today emphasized the value creation potential of its proposed merger combination with Metro−Goldwyn−Mayer Studios Inc. (“MGM”). The Company filed an Amendment to Schedule 14D-9 with the Securities and Exchange Commission yesterday disclosing that it sent an October 11 proposal to MGM regarding a potential business combination between the two companies. Under the terms of the proposal, the combined company would be owned by shareholders of Lionsgate and creditors of MGM.
“This is a unique, once in a lifetime opportunity to create a dynamic, forward-looking studio that unlocks
… Read More »