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Icahn moves to up his Lions Gate stake

ACTIVIST investor Carl Icahn yesterday sought to increase his ownership stake in Lions Gate Entertainment in a move seen as trying to prevent the film company from making an acquisition he would deem undesirable.

Icahn has launched a tender offer, valued at a 15 per cent premium to Friday’s closing price of Lions Gate shares, to boost his stake in Lions Gate to 30 per cent from 19 per cent, a move which would make him the studio’s largest shareholder.

The Miramax library from Walt Disney and the library of struggling Metro-Goldwyn-Mayer are both up for sale.

Lions Gate last week reported a worse-than-expected third quarter loss, and Ican has already been critical of its use of cash.