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Icahn Raises Offer to Buy MGM Debt

In a move to help Lionsgate's chances to acquire MGM, Lionsgate investor Carl Icahn has offered to buy MGM debt for $.53 on the dollar, according to The Hollywood Reporter.

In a move to help Lionsgate's chances to acquire MGM, Lionsgate investor Carl Icahn has offered to buy MGM debt for $.53 on the dollar, according to The Hollywood Reporter. This offer is $.08 higher than what the debt is currently trading at.

Currently, MGM is looking for debtor approval of a preplanned bankruptcy worked out with Spyglass Ent. The deal would see the studio's nearly $4 million worth of debt turned into equity for its creditors. Spyglass co-heads Gary Barber and Roger Birnbaum would head up the combined MGM/Spyglass. Spyglass would control 5% of the new MGM. The lenders have until Friday to vote on the deal.

Lionsgate has put in a last minute offer that would see Lionsgate hold 45% of the new MGM and give MGM creditor's 55%. The combined Lionsgate/MGM would hold $400 million in debt.

Icahn has already bought up $400 million in MGM debt.

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