Carl Icahn just won’t give up in his fight to take control of Lions Gate Entertainment Corporation (NYSE: LGF). Icahn has now launched a website called savelionsgate.com and he is out swinging even harder against management. As far as what Icahn said about the board of directors:
- “These are our directors. They are supposed to be safeguarding our assets. Shareholders, would you want these guys running your family business, let alone Lions Gate?”
Icahn further noted, “Through the years I have seen many transgressions of corporate governance but they all pale in comparison to what has taken place during a week in mid-July 2010 at Lions Gate. Some of the emails that were found in discovery make for fascinating reading.”
The terms and conditions of the Icahn offer is for the purchase of up to all of Lions Gate’s common shares for $7.50 per share. The shares have traded in a range of $4.81 to $7.84. Icahn’s tender efforts have definitely driven shares higher as the stock had slid to under $6.00 for much of 2009 and early in 2010. The average share price from 2005 to 2008 was generally $10.00 as the pivot point.
Today’s news is being treated just as an update or just as though Icahn is not going to make much difference. Shares are down 0.4% at $7.33.
Carl Icahn is rarely a man who holds his words back and he is often very vocal when he goes after companies. If he really wants to make more noise, he might need to offer more money in another higher bid.
JON C. OGG