Lions Gate (NYSE:LGF) Asks Shareholders to Reject $7 a Share Offer from Carl Icahn

In the ongoing battle for control of Lions Gate Entertainment Corp.(NYSE:LGF), the board of the company unanimously rejected the $7 a share offer from Carl Icahn for the company, and has pressed shareholders to reject the offer as well.

Icahn, who owns 19 percent of Lions Gate, has been fighting with them for a year to gain control.

The board of Lions Gate released a statement saying the offer was "financially inadequate, opportunistic and coercive."

Another strategy to fend off Icahn by the Lions Gate board was to try to implement a shareholders rights plan which effectively keep any owner of shares in the company from trying to take it over unless over 50 percent of unaffiliated shares agree to the deal.

All this is again happening because Icahn decided to raise his offer a dollar a share from $6 to $7 a share, making it more attractive to some who may want to go forward with it, something the board is attempting to stop.

Over the duration of the battle shares in Lions Gate have been from $4.50 - $7.29.

Another concern of the board is if Icahn increases his share in the company to over 20 percent, a provision would be triggered which could result in them having to default on a line of credit. The provision is related to change of control in the company.

Icahn has responded to that by offering a bridge loan to the company if that was to actually happen. The board of the company said this move was just another way for Icahn to gain control of Lions Gate.

A shareholder vote is set for May 4 on whether to accept the offer from Icahn or not.