Carl Icahn sought to increase his ownership of Lionsgate on Monday [March 1] in a move that would see his stake grow by nearly half its current level to 29.9% of common shares.
Lionsgate said it would review the proposal before making a recommendation to shareholders.
The corporate raider, who has been tussling with the Santa Monica-based company for many months and currently owns a 19.9% stake, made an unsolicited tender offer to acquire up to 13,164,420 common shares for $6 per share in cash.
Morgan Stanley is serving as financial advisor to Lionsgate and Wachtell, Lipton, Rosen & Katz is serving as legal advisor.
If approved, the offer would give Icahn a greater say in Lionsgate’s broader strategic goals, such as the acquisition of MGM and the Miramax library.