Lions Gate house rejects Icahns ultimate suggest

NEW YORK Tue March 23, 2010 3:02pm EDT Related News UPDATE 1-Lions Gate house rejects Icahn"s ultimate offerTue, March twenty-three 2010UPDATE 2-Time Warner leads bids of up to $1.5bln for MGM-sourcesMon, March twenty-two 2010UPDATE 1-MGM gets dual bids; Time Warner stalls-sourcesMon, March twenty-two 2010Lions Gate, Access bid for MGM, Time Warner stallsMon, March twenty-two 2010Lions Gate, Access bid for MGM, Time Warner stallsMon, March twenty-two 2010 Stocks & &

Investor Carl Icahn speaks at the Wall Street Journal Deals Deal Makers conference, hold at the New York Stock Exchange in this Jun 27, 2007 record photo.

Credit: Reuters/Chip East

NEW YORK (Reuters) - Lions Gate Entertainment Corp"s (LGF.N) house of directors deserted Carl Icahn"s antagonistic bid to buy the movie studio, job the suggest "coercive" and as well low.

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The move was the ultimate growth in a long-running tenure battle, as Icahn seeks to hinder a bid by the college of music -- of that he already owns about a nineteen percent interest -- to take storied opposition Metro-Goldwyn-Mayer.

Time Warner Inc (TWX.N), Lions Gate Entertainment Corp (LGF.N) and billionaire Len Blavatnik"s Access Industries put up opposition bids of $1.2 billion to $1.5 billion for MGM, sources informed with the matter, told Reuters on Monday.

Lions Gate"s house suggested shareholders reject Icahn"s suggest to squeeze the usual shares of Lions Gate he does not already own for $6 per share.

"We hold that zero has altered -- the suggest stays financially unsound and still does not simulate the full worth of Lionsgate shares," Lions Gate Co-Chairman and Chief Executive Officer Jon Feltheimer said.

The house has set a assembly for May 4 for shareholders to plead the offer for a defensive rights plan, or poison pill, to sentinel off attempts to amass shares.

Lions Gate shares gained 3 cents to $5.85 in early New York Stock Exchange trading.

(Reporting by Franklin Paul, modifying by Maureen Bavdek)

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