Shares of Lions Gate Entertainment (LGF) are up 10 cents, or 1.5%, at $6.90 after the firm’s board of directors again rejected Carl Icahn’s hostile bid, after Icahn raised the bid to $7 last Thursday. The board had taken several days to review the bid.
Icahn’s offer is “financially inadequate, opportunistic and coercive and is not in the best interests of Lionsgate, its shareholders and other stockholders,” the board wrote in a press release.
The letter to shareholders accompanying the announcement reiterates many themes from before, including the value created by the board and the value inherent in continuing to pursue its strategy.
It also warns that Icahn is trying to foul-up Lions Gate’s credit agreements: by obtaining just 1.26% in incremental shares ownership, Icahn could cross a 20% ownership threshold, which could cost the company its primary access to credit.
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