Lions Gate set to sell Icahn stock by next week
With its stock trading at about $7 all week, Lions Gate Entertainment said Thursday that despite recent doubts, it expects to sell most of dissident investor Carl Icahn's remaining stake in the company.
As part of an August agreement by both sides to drop litigation against each other, Lions Gate said it would sell about 22 million shares belonging to Icahn on the public market. The studio also bought 11 million of Icahn's shares itself, as did investor Mark Rachesky, who is now the company's largest shareholder.
Earlier this month, Lions Gate had temporarily put on hold its effort to sell Icahn's shares on the public market, as its stock fell below $7, the price at which it was obligated to sell under the agreement.
Lions Gate said it now expects to sell 19.2 million of Icahn's shares by Oct. 18, the deadline under its deal with the corporate raider. It also has the option to sell an additional 2.9 million of Icahn's shares, though it's not yet clear if the company will find buyers in time.
If it does not, Icahn will retain a 3.1% stake in Lions Gate, far below the 33% he previously owned.
A little more than two hours before markets closed Thursday, Lions Gate stock was trading at $7.22.
-- Ben Fritz
Photo: Carl Icahn. Credit: Mark Lennihan / Associated Press.