Shareholder Carl Icahn has offered an all-out $707 million hostile take over bid for Lions Gate, reports VARIETY. Last week, Lions Gate turned down the investor's request to take a bigger share of the company.
Moreover, the company changed the bylaws to make takeovers more difficult. Shareholders are expected to vote on the move in May and, if approved, Icahn vows to take them to court over it.
Icahn already owns 19% and his previous bid of $6 per share would have given him almost 30%. Lions Gate felt the offer would give him too much control and was inadequate.
Part of the conflict between Icahn and Lions Gate is over the company's moves to either purchase MGM or Miramax. Icahn believes the company needs to rein in spending.