Activist investor and minority owner of Lions Gate Entertainment Corp. (NYSE:LGF) Carl Icahn may be looking over his shoulder when it comes to seats on the company's board. Mark Rachesky, Lions Gate's largest investor with a 20% holding, said Wednesday his firm MHR Fund Management LLC may seek a seat on the board of the entertainment studio.
The two are no strangers, as Rachesky was Icahn's former investment chief, but Rachesky's possible ambitions for a board seat may prove a road block to Icahn, who also wants more seats on the board.
Icahn, who holds a 14.5% share of the company, would like to gain seats on the 12-member Lions Gate board primarily because he feels the current stewardship made a major blunder with its $250 million acquisition of TV Guide Network and TVGuide.com. The activist investor told the Los Angeles Times the move "borders on recklessness" and described the addition as "excessive" overhead.
Rachesky has not revealed his stance on the TV Guide deals, but one things for sure if he favors the deal --l he'll have Icahn to contend with. - Gerald Magpily
See Dealscape post Lions Gate hires new guard
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