(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
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