Lions Gate is fired to Icahn.Carl Icahn has announced today that institutional shareholders, an advisory firm services on the proxy votes, recommends that shareholders approve three Icahn Board five candidates for annual Lions Gate meeting on 14 December.
This comes after the company shareholder Egan-Jones has recommended that shareholders support Icahn.
According to the press release from the Icahn, ISS said:
Taking into account the actions of the Board since February…it history would seem prudent to unaffiliated shareholders ask themselves who guard the guards? Combined with poor returns comparative shareholder during the five years – meaningfully worse than peers even despite important uplift provided by Icahn - tender offers, we believe that dissidents have met the burden of proving some change is necessary.
But it is unclear how much shock decision will take SSI. Another Advisory Group of proxy, Glass Lewis, denied Icahn proposal. According to a press release from Lions Gate Glass Lewis said:
Perhaps most notable, however, is the substantial lack of a plan by the Dissident…we see no disclosure which suggests that the dissident candidates have a framework around which construct improved Lions Gate.
With 33% of the shares, Icahn is shareholder of Lions Gate. It attempts to replace the five members of the Board and it has an offer to all shareholders, expiring December 10 to buy all the public shares of the company for $7.50 each. They are currently trading at $7.36. Icahn recently took his fight for Lions Gate to the Internet.
"We want to be respectful of all our shareholders," says Michael Burns, Vice-Chairman of the Committee and a member Icahn seeks. "But it did not articulate a strategy or the vision of what it should be." Our shareholders want to give us what he did to blockbuster. (Despite a 2005 proxy fight that eventually led initially to the CEO, John Antioco, declared Blockbuster Chapter 11 earlier this year).
Yesterday, Lions Gate has sent a letter of struggle of 12 pages detailing his arguments for why investors shareholders must vote to keep the Board being. The letter pointed out that outside of the pharmaceutical sector, where Icahn received new directors companies were not so well.
The letter says:
10 Years if you invested dollar businesses where Mr. Icahn or its representatives have obtained a representation of the Council, biopharmaceuticals, and sold out after leaving the Board of Directors, you would have only 18 CENTS left this (based on the performance of the media) dollar - a decrease in shocking value of 82%.
Stephen Taub in Institutional Investor obtained SharkWatch card checked the claims of Lions Gate and came here suitable as Icahn "on average, average lower market."
Looking at stocks of 15 companies that Icahn targeted where he received at least a board seat, sheet found that stock average fell 13.76% six months after the Board Exchange (apart from pharmaceutical companies).
What happens if the 15 December if Icahn loses his proxy battle? The investor is not in step away quietly in a fight. In his recent MGM Icahn battle retrieves a few concessions to the bankruptcy filing Studio even if he did not merge the company with the Lions Gate (a fact that Icahn and Lions Gate are now fighting the Tribunal where the Lions Gate accused Icahn play on both sides by purchasing a debt at the same time that it was buying Lions Gate MGM actions).
There is a chance that after all is said and done, Lionsgate and MGM may even eventually merged. Icahn could convince MGM to buy from Lions Gate. The troubled studio may be more favourable offer of GMMS which synergies and give the studio merged a deeper library and some promising franchises such as James Bond and the Hobbit) go with funds diversified Lions Gate TV Guide, FearNet Break.com. And Icahn would get some satisfaction in a modified Council. When the Lions Gate originally spoke to merge with MGM, part of the agreement would have replaced three creditors Council Lions Gate with MGM quarters.
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