Bloomberg News

Lions Gate Raises $134 Million Offering Icahn-Owned Stock

October 13, 2011

(Updates with deal background in third paragraph.)

Oct. 13 (Bloomberg) -- Lions Gate Entertainment Corp., the producer of the television drama “Mad Men,” raised $134 million in an offering of shares owned by activist investor Carl Icahn after putting the sale on hold this month.

The company sold 19.2 million shares for $7 each, according to a statement. Funds affiliated with Icahn own about 3.1 percent of Lions Gate’s common shares after the offering.

The sale helps resolve a court dispute spurred by Icahn’s hostile pursuit of the independent film and TV studio. Lions Gate agreed to sell the shares for $7 each as part of the settlement, or 1.4 percent less than yesterday’s closing share price of $7.10.

Lions Gate had planned to complete the offering this month before delaying it on Oct. 4, a day after the Standard & Poor’s 500 Index dipped to its lowest level in a year, a person familiar with the transaction said at the time.

Lions Gate fell 14 cents to $6.96 in trading before rebounding to $7.01 as of 10 a.m. New York time. Piper Jaffray Cos. of Minneapolis led the offering.

--Editors: Chris V. Nicholson, Julie Alnwick

To contact the reporter on this story: Lee Spears in New York at lspears3@bloomberg.net.

To contact the editor responsible for this story: Jennifer Sondag at jsondag@bloomberg.net.


The Good Business Issue
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus