Lionsgate Still Pursuing MGM Merger

Nov 11th, 2010 by dvdxplayer 1,160 views |Comments Off

Lionsgate is continuing to entertain a merger with MGM, after that famed studio emerges from bankruptcy, a Lionsgate senior executive said.

Speaking Nov. 10 on CNBC, Michael Burns, vice chairman concerning the Santa Monica, Calif.-based mini-major, confirmed there are continuing talks (which consist of activist shareholder Carl Icahn) with MGM.

Icahn, who owns considerable stakes in equally studios, may be supportive of the merger.

“If we are able to take place up using the exact transaction, producing it an accretive transaction for our shareholders, [then] we would totally embrace that idea,” melts away said. “We are extremely fascinated inside the MGM transaction.”

MGM shareholders Oct. 29 overwhelmingly voted for just about any pre-packaged bankruptcy plan whereby senior financial debt holders – which include Icahn – would manage 95.3% concerning the studio with minority stakeholder Spyglass Entertainment, placing senior executives Gary Barber and Roger Birnbaum since the co-chairman and CEO concerning the brand new MGM.

Lionsgate experienced submitted a merger suggestion that could have supplied MGM 55% ownership concerning the mixed studio. It also stated the merger would have saved MGM about $100 million in yearly overhead costs. It subsequently sued Icahn, claiming the buyer experienced not been forthright in disclosing his increasing stake in MGM’s debt, between other issues.

With Lionsgate’s yearly shareholder getting together with scheduled for Dec. 14, melts away stated equally sides need to take place throughout a solution.

“Nobody likes spending time and cash and work on litigation,” he said. “I saw Carl last night. He arrived for the premier concerning the following three Days. He stated he liked it.”

Burns named the Paul Haggis-directed thriller, starring Russell Crowe, Elizabeth financial organizations and Liam Neeson, Lionsgate’s extremely best movement image inside the previous 10 years.

“It’s grown-up entertainment,” he said.

The movement image opens theatrically Nov. 19.

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