Carl Icahn said Friday that he has extended, to 8 p.m. ET on June 1, his $7-per-share offer to purchase outstanding shares of Lions Gate Entertainment Corp.
All other terms and conditions of the tender offer remain unchanged. It had been scheduled to expire Friday.
The two sides were said last week to be negotiating a way out of their stalemate.
It appears support for Icahn is dwindling among stockholders. Two weeks ago, he had received tenders of 7 million shares, or 6.3 percent of the company. Currently that figure stands at 4.6 million, or 4 percent.
Lions Gate’s board last week agreed to put $16 million in a trust, to be used to pay severance to five of the company’s top managers in the event that they are ousted after a takeover by Icahn. Lions Gate CEO Jon Feltheimer, vice chairman Michael Burns and three others would be owed millions of dollars if their employment is terminated without "cause" in connection with a change of control.
Icahn, in a statement Friday, called that move "reprehensible," although it is fairly common practice in such situations.
"We believe this latest action, together with the board’s failed and misguided attempts to implement a poison pill and its reckless retention (at enormous expense to shareholders – with no discernible benefit) of no less than six professional advisory firms (two financial advisors, three law firms and a public relations firm) to defend against our offer, shows just how far removed this board has become from its mission of holding management accountable and safeguarding the interests of shareholders," Icahn said in a statement.
A Lions Gate spokesman declined to comment.
