U.S. billionaire launches host

U.S. Billionaire investor Carl Icahn has launched a hostile takeover bid for an independent studio, Lionsgate Entertainment Corp, after it rejected his efforts to increase his stake in the company to 30 percent.

Icahn offered six U.S. dollars a share to acquire at least 50.1 percent of Lionsgate's shares. The deadline for the company to react is April 30. Statistics show that, as of Feb. 1, Lionsgate had issued a total of 117.8 million shares of stock.

Lionsgate is considering the acquisition of its second largest shareholder Metro-Goldwyn-Mayer Inc. that holds about 19 percent of its shares. Lionsgate's largest shareholder, MHR Fund Management, holds 19.7 percent of its shares.

Icahn tried to prevent Lionsgate from bidding to buy MGM Inc., which was up for sale in a bidding war that may conclude Friday.

The board of directors for Lionsgate "will review Icahn's revised offer and will make its recommendation to shareholders promptly," the studio said in a statement.

"The Icahn Group's revised offer does not increase the proposed share price," it added.

"If Icahn is really interested in Lionsgate, then he should make 12 U.S. dollars per share buyout offer for the studio. He wants to interfere with corporate management, so that they can not concentrate on acquisition of MGM Inc," said John Kornitzer, founder of Kansas investment company Capital Management.

Claiming that Icahn's offer could not meet the best interests of investors, Lionsgate on March 12 adopted a shareholder rights plan, making it difficult for investors holding 20 percent stake in the company to buy more shares.

Icahn said he would seek to replace Lionsgate's board and possibly its top management after he took over the company.

Source: Xinhua