Shareholder activist Carl Icahn has his eyes on taking control of Hollywood studio Lions Gate Entertainment (NYSE:LGF), known for making TV Series "Mad Men" as well as movie's "Crash," "Monster's Ball" and "American Psycho." The studio, however, won't go down without a fight, hiring Morgan Stanley and law firm Wachtell, Lipton, Rosen & Katz as its defense team, according to Reuters.
The move comes as Icahn released a statement Tuesday saying he will go forward and acquire $325 million of Lions Gate's debt that converts into company shares. On March 11, Icahn and Lions Gate butted heads, ending talks aimed at handing board seats to the billionaire. Currently, Icahn owns 14.5% of Lions Gate, but his purchase of convertible debt is another sign he wants a larger hold on the studio.
Morgan Stanley and Wachtell Lipton join public relations firm Joele Frank, Wilkinson Brimmer Katcher, which Lions Gate hired March 13 to defend itself against Icahn. The PR team was part of the team that was able to defend against an Icahn proxy fight at Motorola Corp. (NYSE:MOTO). - Gerald Magpily
Continue reading below
