Alexa
  • Directory of Taiwan

Icahn pulls out of Lions Gate talks

Icahn pulls out of Lions Gate talks

Billionaire Carl Icahn says he has cut off talks with Lions Gate Entertainment Corp. about installing some directors of his choosing on the boutique movie studio's board.
The announcement Wednesday signals that Icahn, who as of last month had bought up 14.5 percent of Lions Gate's outstanding stock, could launch a proxy battle to shake up the Santa Monica, California-based company's board and install his own picks, possibly in a bid to pressure the company to put itself up for sale.
Icahn said in a brief statement that his talks with Lions Gate have ended because of a dispute over a "standstill agreement" that Lions Gate was demanding in exchange for installing Icahn's board choices. Standstill agreements are often used by companies to fight hostile takeovers.
Icahn didn't reveal further details.
Lions Gate is under pressure after losing more than $93 million in the latest quarter as movies like "Transporter 3" and "The Spirit" underperformed. The studio has said it will cut its annual output to a dozen films a year, four less than projected, after a financing partner withdrew its support.
Lions Gate shares gained 10 cents, or 2 percent, to $5.06 in after-hours trading Wednesday, having closed the regular session down 32 cents, or 6 percent, at $4.96.


Updated : 2021-07-30 14:10 GMT+08:00