{"id":448474,"date":"2010-03-19T13:57:00","date_gmt":"2010-03-19T17:57:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:410145"},"modified":"2010-03-19T13:57:00","modified_gmt":"2010-03-19T17:57:00","slug":"lions-gate-takeout-or-ma-unlikely","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/448474","title":{"rendered":"Lions Gate takeout or M&A unlikely"},"content":{"rendered":"

Despite Carl Icahn\u2019s offer<\/a> to buy all of Lions Gate Entertainment Corp.<\/a>\u2019s outstanding shares, a takeout by the billionaire New York-based financier looks unlikely.<\/p>\n

After an original tender for 10% of the Vancouver-born movie studio that appeared to be an effort to ensure that Lions Gate didn\u2019t over-pay for either the MGM or Miramax libraries, Mr. Ichan probably has a few more goals now.<\/p>\n

The first is to achieve greater influence on the board of directors to further his strategic views, according to David Bank at RBC Capital Markets. Second, the analyst suggested that Mr. Icahn seeks to convince shareholders \u2013 in a very visible way \u2013 to adopt his views. Thirdly, Mr. Icahn is putting the company in play.<\/p>\n

Mr. Bank told clients that the initial 10% tender was likely to fail, but served as a gauge of shareholder sentiment. But if shareholders were unlikely to give up modest control for US$6 per share, they probably don't want to sell 100% of the company for the same price. <\/p>\n

Mr. Icahn's own slate of directors would need to be elected in order to repeal the \u201cpoison pill\u201d takeover defence implemented to prevent him from boosting his stake to 30% from 19%. As a result, it is unlikely that shareholders who stood by management and rejected the offer will suddenly have a change of heart.<\/p>\n

Mr. Bank thinks Lions Gate shares are fairly valued on a fundamental basis, so Mr. Icahn\u2019s tender should not generate an M&A-driven value-realizing event. The analyst also said that the company "simply isn\u2019t on the front-burner for consolidation targets in Hollywood.\u201d <\/p>\n

Jonathan Ratner<\/a> <\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Despite Carl Icahn\u2019s offer to buy all of Lions Gate Entertainment Corp.\u2019s outstanding shares, a takeout by the billionaire New York-based financier looks unlikely. After an original tender for 10% of the Vancouver-born movie studio that appeared to be an effort to ensure that Lions Gate didn\u2019t over-pay for either the MGM or Miramax libraries, […]<\/p>\n","protected":false},"author":4059,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-448474","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/448474","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4059"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=448474"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/448474\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=448474"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=448474"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=448474"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}