Icahn Offers to Buy Lions Gate Debt at Premium
Barry Genkin, partner in Blank Rome's shareholder activism group, was recently quoted by the Associated Press regarding billionaire investor Carl Icahn's recent offer to buy up to $325 million in debt owed by Lions Gate Entertainment Corp.
As Mr. Icahn already owns14.5% of the company's shares, many analysts believe that this move to buy Lions Gate's convertible bonds is a way of gaining leverage over the company's board. The bonds could boost his stake to about 30 percent if converted into common shares.
Mr. Icahn has argued that he's not seeking to increase his stake in the company, but rather, to make a good investment. A spokesman for Lions Gate declined to comment.
"In this game of chess, this is certainly a move which enhances his offensive position," said Barry Genkin.
"Icahn Offers to Buy Lions Gate Debt at Premium," by Ryan Nakashima first appeared in the Associated Press on March 17, 2009. To learn more about the Associated Press, please visit www.ap.org.