Continuing to spurn Carl Icahn, Lionsgate has officially rejected the billionaire’s sweetened bid for the company, asserting that his hostile offer doesn’t fairly value the minimajor and has too many conditions. Icahn hiked his bid for Lionsgate on Aug 31. to $7.50 a share offer but insisted that Lionsgate rescind its July 20 debt-for-equity deal with Lionsgate director Mark Rachesky, or convert Rachesky’s shares into nonvoting stock. Lionsgate responded yesterday after the stock market closed in a Securities and Exchange Commission filing, recommending to its shareholders that they not tender their stock. Icahn’s offer expires Oct. 22 and he’s asked the Supreme Court of British Columbia to reverse the issuance of Lionsgate stock to Rachesky with a hearing set for Oct. 12. The company’s July 20 swap of debt for equity increased Rachesky’s stake to 29% and reduced Icahn’s stake from 38% to 33%.
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