Investor Carl Icahn's unsolicited buyout of Lionsgate has been rejected by the company's board of directors, the indie studio said in a statement Monday.
The $6.50 per share offer "is not in the best interests of Lionsgate and its shareholders and other stakeholders," according to the company statement. "The Board strongly recommends that Lionsgate shareholders not tender their shares into the Icahn Group's offer."
Last week, the Icahn Group sued Lionsgate over its dilution of shares. Icahn said Lionsgate engaged in "an improper defensive tactic and abusive of the rights of all other shareholders."
Icahn, the largest Lionsgate shareholder, made his offer July 19. The offer is scheduled to expire at 5 p.m. PT on Aug. 25, unless extended or withdrawn. His stake dropped from 38 percent to 33.5 percent after the dilution move.
Icahn has threatened to oust Lionsgate executives, force the company into bankruptcy and other dire consequences. The outspoken billionaire has criticized Lionsgate's management team for lacking vision and for failing to keep costs down.
Lionsgate shares closed up 12 cents Monday to $6.72.