Lionsgate and Icahn Enter Talks
Lionsgate has entered into talks with shareholder Carl Icahn in an effort to remedy their year-plus dispute, reports VARIETY. Icahn has been pursuing a $7-per-share hostile takeover of the studio. Icahn's push for more control over the company, which he believes is financially mismanaged, has led Lionsgate to call Icahn incompetent to run the business.
Whether the talks will resolve the argument is hard to guess considering the two parties sat down in October of 2008 with no success. The trade pub said that Lionsgate is more willing to negotiate with Icahn following discussions with top shareholders and Canadian regulators recent decision to block Lionsgate's "poison pill" attempt to dilute Icahn's shares. Rumors have Icahn willing to drop his takeover push in return for seats on the board.
On May 12th, the shareholders did vote 56% in favor of the poison pill even though it was rejected by the Canadian government. The vote shows weak support for an Icahn takeover with the other shareholders.