files/pictures/picture-35.jpgAfter talks with its shareholders, including activist investor Carl Icahn, Lionsgate has made another merger offer to MGM as the company moves ahead with a deal with Spyglass Ent., according to The Hollywood Reporter
Lionsgate's offer would see MGM owned by Lionsgate shareholders and MGM creditors, who would hold 55% of the combined company.
Icahn went on record as saying the MGM merger is better for both companies than the deal in place with Spyglass. He added that his lawsuits against Lionsgate over equity swaps that diluted his share in the company would have no barring on his attitude toward a merger with MGM.
A MGM source told the trade pub that the last minute Lionsgate offer came as a surprise to the company.
A vote of the 100+ creditors in MGM is pending to approve a prepackaged bankruptcy worked out with Spyglass. If approved Spyglass would control 4.7% of MGM and its heads Gary Barber and Roger Birnbaum would serve as co-chairmen and co-CEOs of MGM. The deadline for the vote is Oct. 22.