MGM Shareholders Nix Lionsgate Merger

Nov 01st, 2010 by dvdxplayer 1,087 views |Comments Off

Shareholders of fiscally-challenged Metro-Goldwyn-Mayer Inc. previous due Oct. 29 overwhelmingly voted for just about any pre-packaged bankruptcy plan; rejecting a merger suggestion by Lionsgate.

Under conditions from the Chapter 11 filing – credited within of the coming times – senior debts holders would manage 95.3% from the studio with Spyglass amusement retaining the remainder and placing senior executives Gary Barber and Roger Birnbaum since the co-chairman and CEO of MGM subsequent the its emergence from bankruptcy.

Santa Monica, Calif.-based Lionsgate experienced submitted a merger suggestion that could have retained MGM 55% ownership from the blended studio. It also mentioned the merger would have saved MGM about $100 million in yearly overhead costs.

The Lionsgate tactic was supported by activist shareholder Carl Icahn, who also owns a sizable stake in MGM and reportedly will presume a board seat within of the restructured company.

Icahn’s raising stake in MGM caught Lionsgate by shock and prompted the studio Oct. 28 to document a lawsuit in opposition to the person – a proceed different think sank its merger proposal.

MGM, which was purchased for $5 billion in 2004 with a consortium led by non-public equity firms TPG, Providence Equity Partners, Sony Corp. of America and Comcast, among others, has lost a massive selection of millions of bucks greater compared to many years as its venerable catalog failed to produce projected revenue.

In latest many years the studio experienced trouble producing the attention obligations for the $4 billion debt.

MGM films, which consist of earlier “James Bond” and “Pink Panther” movies, are distributed on disc by 20th Century Fox home Entertainment.

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