When it comes to Metro-Goldwyn-Mayer, Carl Icahn is putting his money where his mouth is.
The billionaire investor announced on Tuesday that he is raising his tender offer for the studio's outstanding debt to .53 cents per dollar. Last week, Icahn told MGM's debt holders that he would pay .45 cents on the dollar for their notes.
In total, Icahn is offering to buy up to $1.6 billion in principal amount of MGM senior secured notes.
The revised bid is intended to encourage creditors to vote against a prepackaged bankruptcy plan for the that would see Spyglass chiefs Gary Barber and Roger Birnbaum take control of the studio. Icahn supports having MGM merge with Lionsgate instead.
The offer will expire on Oct. 29, the same day that the vote is scheduled to be held.
MGM is struggling under nearly $4 billion in debt. Its financial problems have caused substantial headaches for the productions of tentpole franchises such as James Bond and "The Hobbit."
The studio's leadership backs the Spyglass merger, believing that there are too many outstanding issues regarding Lionsgate and that Spyglass' Barber and Birnbaum could assume control more quickly.
