Icahn ups stake in Lionsgate (THR, VAR, DHD)

By Nancy Tartaglione-Vialatte

Is Carl Icahn making a run at Lionsgate? The activist investor has upped his stake in the company to 9.17%. The indie’s shares had dropped 24% this month before rallying 6% on Monday and a further 8% in afterhours trading. In an SEC filing, Icahn said he took the increased stake "in the belief the shares were undervalued."

The filing also says that Icahn or his representatives "have had discussions" with Lionsgate CEO Jon Feltheimer and vice chairman Michael Burns. The parties may also "continue to have discussions" from time to time and Icahn might purchase more shares in the open market, or otherwise, "at any time."

Icahn, known for his battles with the heads of Time Warner and, lately, Yahoo, has been a Lionsgate shareholder for three years.

According to Variety, a Lionsgate rep said, "We continue to have a constructive dialogue. He has a superb track record in terms of recognizing when strong assets are undervalued."

Lionsgate, known for the "Saw" franchise and TV's "Mad Men," recently extended Feltheimer's deal through 2014 and also closed a $350 million credit facility with J.P. Morgan.

As of Monday, Lionsgate's market capitalization was $865.1 million, and its enterprise value was $913.9 million, notes The Hollywood Reporter.