Mark Cuban Backing Icahn as the Corporate Raider Sends Scathing Open Letter to Lionsgate's Board LATimes' Company Town blog
HDNet owner Mark Cuban, who owns shares in Lionsgate worth about 5.4% of the company, said he would likely tender his shares in Lionsgate to investor Carl Icahn, who is trying to take over the indie studio, according to the Los Angeles Times' Company Town Blog.
Ichan curently owns shares worth about 19% of the company but "is poised to own 28% or more of Lions Gate's stock and become the company's largest shareholder when his $7-a-share takeover offer expires next week," the report says.
According to the article, written by the Times' longtime entertainment reporter/editor Claudia Eller, Icahn is getting this support as he's sent a scathing letter "aimed at urging Lions Gate stakeholders to sell their shares to him by Wednesday's tender offer deadline, Carl Icahn admonished the company's board for its 'apparent ambivalence regarding Lions Gate fate.' In an open letter to the 12-member board, Icahn said he was 'truly mystified by some of your actions and your inaction in the face of the abject failure of the current management to deliver value to shareholders, and I fear for the future of our company.' "
Icahn says circumstances could cause a deal Lionsgate has with its lead bank, JPMorgan Chase, could implode, forcing the company into bankruptcy.
According to the article, in his open letter Icahn wrote, " 'Although we suspect that you will continue burying your heads in the sand with respect to this impending disaster, we advise you again that we stand ready to begin discussions with you immediately regarding the terms of a bridge facility.' He added, '...I remain confused as to why you refuse to deal with the ticking time bomb sitting in your debt documents.' "