Thursday, July 8, 2010
Rumblings at the Lions Den
Lions Gate Films (the Santa Monica based studio behind the "Saw" franchise) is facing a takeover from a Carl Icahn. Often referred to as the 59th richest person in the world, with a net value of over 10.5 million dolalrs, Icahn is an equity investor who has aimed to acquire 37.9% of the company shares. In an attempt to thwart his attempt at reaching over 38% which would put him in the majority, Lions Gate will possibly issue more stock to other shareholders. LGF is currently in talks of a possible merger with the near bankrupt MGM. If Icahn takes over Lions Gate, one could only wonder what his plans are with that possible merger if he indeed takes over and replaces to current board of directors? Icahn currently has 33.9% of LGF stock, which puts him in a position to block some current decisions made by the board of directors that require two/thirds vote. LGF opened in the stock market today at $6.66.