Billionaire investor will give Lionsgate shareholders until Nov. 1 to accept his bid
Carl Icahn is taking a wait and see approach.
The renegade investor is extending his offer to buy up shares of Lionsgate until after a key vote on an Metro-Goldwyn-Mayer bankruptcy plan that would see the debt ravaged studio taken over by Spyglass chiefs Gary Barber and Roger Birnbaum.
That MGM vote is scheduled for Oct. 29, and Icahn’s Lionsgate bid has been extended from that date to the following Monday, Nov. 1.
Icahn has been engaged in a lengthy proxy fight for control of Lionsgate for much of the past year. Yet tensions have cooled in recent weeks as the investor threw his weight behind a merger proposal that would see Lionsgate join forces with MGM.
The billionaire has been using his insider status to influence the outcome of the MGM vote. On Thursday, Icahn announced that he will buy debt from the studio’s creditors provided they vote against Spyglass' prepackaged bankruptcy plan.
Icahn has a substantial toehold in both companies. He has an over 30 percent stake in Lionsgate and own over 13 percent of MGM's outstanding debt.
Icahn is offering $7.50 per share for Lionsgate. The company rejected an earlier $6.50 per share offer.