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Icahn, Lionsgate set temporary truce
LOS ANGELES, (UPI) -- Lionsgate and its major stakeholder, corporate raider Carl Icahn, agreed to a 10-day cease-fire to work jointly on mergers and acquisitions, documents say.
The documents filed with the Securities and Exchange Commission indicate the truce could open the way for Icahn and Lionsgate to agree on moves that could include a deal with MGM, The Hollywood Reporter said.
Icahn earlier tried a hostile takeover of the company.
A letter Friday from Lionsgate Vice Chairman Michael Burns to Icahn and Icahn Capital Lp. said Lionsgate and Icahn are to "work together on certain acquisition opportunities" until midnight July 19.
The Reporter said as part of the deal, Lionsgate will not issue stock or do a corporate deal "outside the ordinary course of business" during the truce, or "engage in active negotiations for any transaction" other than an acquisition that they both agree on. The company also promised not to set a date for an annual shareholder meeting for 45 days after July 19, the Reporter said.
Lionsgate's Michael Burns, Icahn and his son Brett Icahn brokered the truce, the report said.
The entertainment industry newspaper said it appears Lionsgate will consider boardroom representation for Icahn, including a likely seat for his son. The Icahn stake in Lionsgate is at nearly 38 percent.
LOS ANGELES, (UPI) -- Lionsgate and its major stakeholder, corporate raider Carl Icahn, agreed to a 10-day cease-fire to work jointly on mergers and acquisitions, documents say.
The documents filed with the Securities and Exchange Commission indicate the truce could open the way for Icahn and Lionsgate to agree on moves that could include a deal with MGM, The Hollywood Reporter said.
Icahn earlier tried a hostile takeover of the company.
A letter Friday from Lionsgate Vice Chairman Michael Burns to Icahn and Icahn Capital Lp. said Lionsgate and Icahn are to "work together on certain acquisition opportunities" until midnight July 19.
The Reporter said as part of the deal, Lionsgate will not issue stock or do a corporate deal "outside the ordinary course of business" during the truce, or "engage in active negotiations for any transaction" other than an acquisition that they both agree on. The company also promised not to set a date for an annual shareholder meeting for 45 days after July 19, the Reporter said.
Lionsgate's Michael Burns, Icahn and his son Brett Icahn brokered the truce, the report said.
The entertainment industry newspaper said it appears Lionsgate will consider boardroom representation for Icahn, including a likely seat for his son. The Icahn stake in Lionsgate is at nearly 38 percent.
