ICAHN UPS LIONSGATE OFFER TO $7 A SHARE + CUBAN TAKING LG STAKE (FT, DH)

By Nancy Tartaglione

Carl Icahn has increased his hostile bid for Lionsgate to $7 a share. In a letter to shareholders, the activist investor outlined his intentions and took the company's management to task saying, "The board continues to describe Lionsgate's horrible share performance as a tale of great success." The upped bid comes days after Lionsgate rejected his $6-a-share offer as inadequate.

Lionsgate has asked shareholders to vote for a poison pill provision that would dilute holdings in the event of Icahn adding to his stake, The Financial Times noted.

Icahn added that interest Lionsgate had previously shown in MGM, for example, was a "misguided strategy" and that "film libraries are essentially depreciating assets that have been likened to 'melting ice cubes'."

"We do not feel comfortable that existing management is the right team to guide Lionsgate through this difficult period," said Icahn.

The studio responded saying it would review Icahn's latest offer and would "make its recommendation to shareholders promptly."

Meanwhile, Deadline.com reported that Mark Cuban said he now has a 5.4% stake in the studio.

In Deadline's words, "What the hell that means is anybody's guess."