Lionsgate vs. Icahn, Video of Live 13D War On CNBC, Icahn Owns 19%, Mark Cuban Owns 5.4% and Technical Analysis ($LGF, $IEP)

It's been an interesting few months for Carl Icahn and Lions Gate Entertainment. The televised 13D war on CNBC made history. 13Ds must be filed with the SEC within 10 days of owning 5% or more of a company. Carl is trying to buy Lionsgate for $7 and remove management but there's a poison pill potentially blocking him. The Icahn entities own about 19% of the company. You know what else is interesting, Mark Cuban just scooped up a 5.4% position and sold 20,000 puts to counterparties at $7.50 expiring January 2011 (he'll buy 2 million shares if they exercise). For more information on poison pills see the recent Stock Wars episode (7 minutes in). Enjoy the Icahn fight vs. Michael Burns below on CNBC and the LGF chart.  Along with chart break outs and option activity, 13Ds, takeovers and value plays are also interesting to watch. If you didn't already know, "Lionsgate is the leading next generation studio with a major presence in the production and distribution of motion pictures, television programming, home entertainment, family entertainment, video-on-demand and digitally delivered content." (Lionsgate).

Lions Gate to allow Icahn vote on poison pill - April 23, 2010/Reuters
Icahn Lifts Lions Gate Bid to $7, Says Management Should Go - April 15, 2010/Bloomberg
Lions Gate drops out of bidding for MGM - March 25, 2010/LA Times
Lions Gate drops bid for MGM: report - March 25, 2010/MarketWatch
Lions Gate Exec Michael Burns vs. Carl Icahn March 24, 2010/CNBC


Icahn offers to buy Lions Gate as MGM bid looms - March 9, 2010/Reuters

LGF is looking decent.  It broke out of the $6.75 ceiling resistance level and long term downtrend from 2008.  It could be headed towards $8.50 if it can keep up strength and momentum.  There's definitely gap back-fill risk to $6.50 if the relative strength index rolls over on strong volume.  MACD is looking strong for now. Of course "Icahn" risk must be hedged as well (see WCI).

LGF (Lions Gate Entertainment - Courtesy of Stockcharts.com)

Comments

  1. Lionsgate vs. Icahn Battle Drags Out Further

    Today he announced he's extended his $7 a share tender offer for Lionsgate—for the third time. Instead of expiring.... http://www.cnbc.com/id/37280251

    ReplyDelete
  2. Icahn said Wednesday that 12.5 percent of Lions Gate Entertainment's (LGF.N) shares were tendered after his $7 a share offer, effectively giving him a 31 percent stake in the studio http://www.reuters.com/article/idUSTRE65F5NI20100616

    ReplyDelete

Post a Comment