Lionsgate’s board of directors has voted to reject Carl Icahn’s unsolicited bid to purchase the Santa Monica-based studio.
The board recommended rejection for a number of reasons, among them that the corporate raider’s offer of $6 a share undervalues the company; that Icahn Group lacks experience in the entertainment industry; and that the offer would constitute an event of default under Lionsgate’s credit facilities.
Icahn owns 19% of Lionsgate and his latest move follows a recent attempt to raise his stake to 30%.
“We believe that nothing has changed — the offer remains financially inadequate and still does not reflect the full value of Lionsgate shares,” Lionsgate co-chairman and CEO Jon Feltheimer said.
“The only substantive change is that the Icahn Group is now bidding for full control of the company without offering a meaningful vision, without demonstrating a relevant track record of industry experience and without paying a control premium.
“We believe that this financially inadequate proposal stands in stark contrast to our patient, disciplined strategy of building a strong and diversified Company step by step over the past 10 years under a seasoned board of directors and an experienced management team. Our plan for continuing to grow our portfolio of businesses is reflected in our ongoing achievements and initiatives each week.”