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Icahn Launches Third Bid for MGM Debt

Investor will pay 50 cents on the dollar for notes provided creditors vote against Spyglass plan

When it comes to killing Spyglass' plan to take over Metro-Goldwyn-Mayer, Carl Icahn is clearly not worried about looking desperate.

The billionaire investor launched his third offer for MGM debt on Wednesday. He is now trying to buy notes from the studio's creditors for 50 cents on the dollar.

The only stipulation is that debtors agree to vote against a prepackaged bankruptcy plan that would see Spyglass chiefs chiefs Gary Barber and Roger Birnbaum take control of the company.

Icahn favors a merger between MGM and Lionsgate. MGM is currently laboring under $4 billion in debt, and its financial problems have put the venerable studio and its production slate in limbo.

Icahn's latest bid is lower than the 53 cent per note he offered on Tuesday, but unlike his previous bids there are no preconditions attached. Noteholders do not have to sell him a minimum amount of debt and Icahn will pay immediately.

Last week, the investor said he would pay a minimum price of 45 cents on the dollar for any notes.

Icahn claims he now has about $500 million of MGM's debt. He also has a more than 30 percent stake in Lionsgate, and has been involved in a drawn out proxy fight for control of that studio.