Billionaire investor Carl Icahn confirmed on Friday that he is now launching an all-out bid to take over Lions Gate Entertainment Corp. (LGF).
The move by Mr. Icahn comes a week after the independent studio behind the hit TV series “Mad Men,” called his unsolicited offer of $6 per share, or up to $79 million, ‘inadequate’ and adopted a shareholder rights plan that would make such a takeover attempt more difficult. Mr. Icahn was looking to raise his stake in LGF to as much as 30%. He currently holds a stake of nearly 19%.
“Lions Gate previously criticized our tender offer for being partial,” Mr. Icahn said in a statement. “That is no longer the case.”
Icahn left his offer at $6 per share on Friday, and said that if his offer is successful, he would seek to replace Lions Gate’s board of directors with its own nominee.
“Due to management’s recent actions, I am now convinced that Lions Gate shareholders will never have the right to make important decisions. I am dismayed that Lions Gate’s board of directors chose to implement a poison pill and thus deny their shareholders the opportunity to participate in our Offer.
I believe these tactics serve only to strip shareholders of an opportunity and entrench management.” Icahn also said that he intended to pursue legal action against Lions Gate’s ‘poison pill’.
The company’s stock, which shot up more than 5% premarket, was up $0.02 to $5.99 in mid-day trading Friday.