Icahn, Lions Gate to work together on potential acquisitions

MUMBAI: Setting aside their differences, Lions Gate Entertainment and Carl Icahn, its largest shareholder, agreed to work together on certain acquisition opportunities from 9 to 19 July.

In a regulatory filing, Lions Gate has said that it will refrain from issuing shares in excess of 5 per cent of its share capital if not required in the normal course of business or related to joint acquisitions with Icahn though it did not elaborate on the acquisition opportunities in its filing.

Icahn, who acquired a 37.9 per cent stake in Lions Gate, has launched a hostile takeover bid of the company and threatened to fight to unseat its management.

Sources familiar with the situation said last month that Lions Gate had talked to Metro-Goldwyn Mayer about a merger but Icahn opposed such a deal because it would come with a movie library that is declining in value.

Icahn has repeatedly criticised Lions Gate for poor cost control and mismanagement.