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Headline, Industry News
Canadian regulators clear way for Icahn
Thursday June 10th 2010Carl Icahn announced that Canadian regulators have cleared his hostile takeover bid for Lionsgate.
The billionaire, who owns 18.8% of Lionsgate, also said Wednesday that he won’t extend the $7 a share offer past its June 16 expiration or change the price. Icahn’s extended the offer six times and announced plans a week ago for a proxy fight to replace the Lionsgate board due to what he’s characterized as “excessive” spending.
Shares were up 8 cents to $7.08 on the New York Stock Exchange in mid-session trading. The stock’s up over 21% this year; Icahn’s bid values the company at $825 million.
Icahn said Wednesday that the approval for the takeover bid came from the Minister of Canadian Heritage under the Investment Canada Act. “I am very pleased that our investment in Lions Gate has been determined to be of net benefit to Canada,” he said in the release.
Icahn also said that, as part of the agreement, Lionsgate will keep its headquarters in Canada and possibly boost the level of production in Canada on a province-by-province basis. He also promised that the company’s Maple Pictures, which distribs its library in Canada, will remain under Canadian control.
In response, Lionsgate had no comment other reminding its shareholders that its board recommends against Icahn’s unsolicited bid and noting that the offer’s made little headway so far.
“The offer remains financially inadequate and coercive and is not in the best interests of Lionsgate, its shareholders and other stakeholders,” the company said in a statement. “Since the Icahn Group announced their original offer on March 1, 2010, with numerous subsequent extensions, less than 4% of Lionsgate’s outstanding shares have been tendered.”
Icahn’s latest bid drops the requirement that at least 50.1% of the shares be tendered for his offer to go through.
Lionsgate has noted that its recent earnings report showed “significant improvements” in profitability and cash flow and that its spending on its core businesses amount to less than 8% of revenues.
The minimajor hasn’t yet set its annual meeting, at which shareholders will vote on board members. It usually holds the event in Toronto in September.
If Icahn’s stake tops 20%, it could trigger a default of Lionsgate’s credit line. At 30%, he’d have veto power over acquisitions.
After Icahn’s offer expires June 16, there will be an additional 14 days for shareholders who have not yet tendered to do so.
James Moore, minister of Canadian Heritage and Official Languages, disclosed the approval of Icahn’s bid in a statement Wednesday. The review’s required since Icahn isn’t Canadian.
“The investor has shown its willingness to promote Canadian cultural products,” Moore said in a statement. “This decision is good for Canada. It will result in Lions Gate maintaining or increasing Canadian film and television production and protect and preserve Canadian jobs.”
Source: Variety
Headline, Industry News
Canadian regulators clear way for Icahn
Thursday June 10th 2010Carl Icahn announced that Canadian regulators have cleared his hostile takeover bid for Lionsgate.
The billionaire, who owns 18.8% of Lionsgate, also said Wednesday that he won’t extend the $7 a share offer past its June 16 expiration or change the price. Icahn’s extended the offer six times and announced plans a week ago for a proxy fight to replace the Lionsgate board due to what he’s characterized as “excessive” spending.
Shares were up 8 cents to $7.08 on the New York Stock Exchange in mid-session trading. The stock’s up over 21% this year; Icahn’s bid values the company at $825 million.
Icahn said Wednesday that the approval for the takeover bid came from the Minister of Canadian Heritage under the Investment Canada Act. “I am very pleased that our investment in Lions Gate has been determined to be of net benefit to Canada,” he said in the release.
Icahn also said that, as part of the agreement, Lionsgate will keep its headquarters in Canada and possibly boost the level of production in Canada on a province-by-province basis. He also promised that the company’s Maple Pictures, which distribs its library in Canada, will remain under Canadian control.
In response, Lionsgate had no comment other reminding its shareholders that its board recommends against Icahn’s unsolicited bid and noting that the offer’s made little headway so far.
“The offer remains financially inadequate and coercive and is not in the best interests of Lionsgate, its shareholders and other stakeholders,” the company said in a statement. “Since the Icahn Group announced their original offer on March 1, 2010, with numerous subsequent extensions, less than 4% of Lionsgate’s outstanding shares have been tendered.”
Icahn’s latest bid drops the requirement that at least 50.1% of the shares be tendered for his offer to go through.
Lionsgate has noted that its recent earnings report showed “significant improvements” in profitability and cash flow and that its spending on its core businesses amount to less than 8% of revenues.
The minimajor hasn’t yet set its annual meeting, at which shareholders will vote on board members. It usually holds the event in Toronto in September.
If Icahn’s stake tops 20%, it could trigger a default of Lionsgate’s credit line. At 30%, he’d have veto power over acquisitions.
After Icahn’s offer expires June 16, there will be an additional 14 days for shareholders who have not yet tendered to do so.
James Moore, minister of Canadian Heritage and Official Languages, disclosed the approval of Icahn’s bid in a statement Wednesday. The review’s required since Icahn isn’t Canadian.
“The investor has shown its willingness to promote Canadian cultural products,” Moore said in a statement. “This decision is good for Canada. It will result in Lions Gate maintaining or increasing Canadian film and television production and protect and preserve Canadian jobs.”
Source: Variety
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Headline, Industry News
Canadian regulators clear way for Icahn
Thursday June 10th 2010Carl Icahn announced that Canadian regulators have cleared his hostile takeover bid for Lionsgate.
The billionaire, who owns 18.8% of Lionsgate, also said Wednesday that he won’t extend the $7 a share offer past its June 16 expiration or change the price. Icahn’s extended the offer six times and announced plans a week ago for a proxy fight to replace the Lionsgate board due to what he’s characterized as “excessive” spending.
Shares were up 8 cents to $7.08 on the New York Stock Exchange in mid-session trading. The stock’s up over 21% this year; Icahn’s bid values the company at $825 million.
Icahn said Wednesday that the approval for the takeover bid came from the Minister of Canadian Heritage under the Investment Canada Act. “I am very pleased that our investment in Lions Gate has been determined to be of net benefit to Canada,” he said in the release.
Icahn also said that, as part of the agreement, Lionsgate will keep its headquarters in Canada and possibly boost the level of production in Canada on a province-by-province basis. He also promised that the company’s Maple Pictures, which distribs its library in Canada, will remain under Canadian control.
In response, Lionsgate had no comment other reminding its shareholders that its board recommends against Icahn’s unsolicited bid and noting that the offer’s made little headway so far.
“The offer remains financially inadequate and coercive and is not in the best interests of Lionsgate, its shareholders and other stakeholders,” the company said in a statement. “Since the Icahn Group announced their original offer on March 1, 2010, with numerous subsequent extensions, less than 4% of Lionsgate’s outstanding shares have been tendered.”
Icahn’s latest bid drops the requirement that at least 50.1% of the shares be tendered for his offer to go through.
Lionsgate has noted that its recent earnings report showed “significant improvements” in profitability and cash flow and that its spending on its core businesses amount to less than 8% of revenues.
The minimajor hasn’t yet set its annual meeting, at which shareholders will vote on board members. It usually holds the event in Toronto in September.
If Icahn’s stake tops 20%, it could trigger a default of Lionsgate’s credit line. At 30%, he’d have veto power over acquisitions.
After Icahn’s offer expires June 16, there will be an additional 14 days for shareholders who have not yet tendered to do so.
James Moore, minister of Canadian Heritage and Official Languages, disclosed the approval of Icahn’s bid in a statement Wednesday. The review’s required since Icahn isn’t Canadian.
“The investor has shown its willingness to promote Canadian cultural products,” Moore said in a statement. “This decision is good for Canada. It will result in Lions Gate maintaining or increasing Canadian film and television production and protect and preserve Canadian jobs.”
Source: Variety
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