Carl Icahn launches hostile takeover bid for Lions Gate [Updated]
One week after Lions Gate Entertainment rejected his bid to raise his stake in the studio, investor Carl Icahn is launching a hostile takeover bid for the entire company. [For the record, updated 9:41 a.m.: An earlier version of this post said Lions Gate had rejected Icahn's holdings in the studio. It had rejected his bid to raise his stake in the studio.]
Icahn is offering $6 a share, which sent Lions Gate shares rising above the offer price in early morning trading.
Icahn, who owns nearly 19% of Lions Gate, has been steadily increasing his stake in the studio and recently launched a tender offer to up his stake to nearly 30%.
The investor has been angling for more control over Lions Gate, which operates out of Santa Monica under the leadership of chief executive Jon Feltheimer and vice chairman Michael Burns.
Icahn has been critical of management and has tried to stop them from pursuing the acquisition of Metro-Goldwyn-Mayer Inc. Icahn's unfriendly takeover bid comes on the very day that final bids are due for MGM. Lions Gate is expected to be one of a few bidders.
Lions Gate officials could not immediately be reached for comment.
-- Claudia Eller