Lions Gate Said to Approach MGM Studio Creditors on Purchase [BusinessWeek]

According to an article in BusinessWeek, Lions Gate Entertainment has approached MGM’s creditors with the aim of acquiring the studio, although they will need the approval of Carl Icahn, the Lions Gate’s largest shareholder.The article notes:

“Any agreement to buy Los Angeles-based MGM would have to be approved by Carl Icahn, Lions Gate’s largest shareholder. He took a 10-day break from efforts to gain control of Vancouver- based Lions Gate’s board so the company could make a case for certain acquisitions. That standstill agreement expires on July 19. Debt-hobbled MGM is co-owner of the James Bond franchise.”

While Icahn has publicly opposed such a move in the past because he doesn’t want his holdings diluted. However, Lions Gate have said they would not do the kind highly leveraged deal that would result in this.

Once MGM is back on some kind of stable financial footing is is likely that Bond 23 will go back into production.

Read “Lions Gate Said to Approach MGM Studio Creditors on Purchase” at BusinessWeek