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(Updates with closing share price in third paragraph.)
Oct. 4 (Bloomberg) -- Lions Gate Entertainment Corp., the independent film and TV studio, put an offering of shares owned by Carl Icahn on hold, a day after stocks dipped to a one-year low, a person with knowledge of the transaction said.
The company, creator of the “Mad Men” television drama, had intended to price a planned secondary offering of 19.2 million shares yesterday and hasn’t set a new date for the offering, said the person, who asked not to be named because the information is private.
Lions Gate agreed to sell the shares for $7 each as part of a settlement of lawsuits filed during Icahn’s hostile bid for the company, according to a Sept. 16 prospectus. Vancouver-based Lions Gate, run from Santa Monica, California, rose 24 cents, or 3.5 percent, to $7.08 at 4 p.m. in New York Stock Exchange composite trading.
Lions Gate spokesman Peter Wilkes declined to comment.
Companies have postponed or withdrawn plans for 18 additional share sales in the U.S. this year worth a total of $1.6 billion as an ongoing European debt crisis and faltering economic recovery caused stocks to dip and volatility to surge. The pulled share sales in 2011 have eclipsed the $1.4 billion worth of scrapped additional sales in the U.S. in all of 2010, data compiled by Bloomberg show.
The Standard & Poor’s 500 Index rose 2.3 percent as of 4:34 p.m. New York time, after falling yesterday to its lowest level since September 2010. The Chicago Board Options Exchange Volatility Index, known as the VIX, surged as high as 48 on Aug. 8, compared with the average level of 18 in the first half.
Piper Jaffray Cos. in Minneapolis is leading the Lions Gate offering.
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