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Lionsgate Files to Raise Up to $750M

Signals that it may be gearing up for a major acquisition

Lionsgate Entertainment, signaling that it may be gearing up for a major acquisition or another strategic move, on Wednesday filed a registration with the Securities and Exchange Commission to raise up to $750 million.

The filing comes as Lionsgate is in the midst of bidding for struggling Metro-Goldwyn-Mayer. Lionsgate is one of a half-dozen companies that are in a second round of bidding to buy MGM. The non-binding offers submitted so far range between $1.4 billion and $1.8 billion, estimate people close to the situation.

The filing comes just a day after shareholder Carl Icahn voiced concern about Lionsgate making a major acquisition such as MGM or Miramax without shareholder approval. Icahn’s declaration came as he announced his intention to make a tender offer to raise his stake in the studio to just under 30% from 18.9%.

Read more at the Los Angeles Times.