Icahn Buys More Lions Gate Shares

Billionaire activist investor Carl Icahn bought up another 200,000 shares in boutique movie studio Lions Gate Entertainment Corp. on Wednesday, boosting his stake to 14.5 percent, a filing showed.

Icahn bought the shares at a price of $4.6412, according to a filing with the Securities and Exchange Commission.

Lion Gate shares ended Wednesday up 21 cents, or 4.6 percent, to $4.80.

The purchase increased the number of shares Icahn owns through various investment vehicles to 16,740,849 out of the total 115,829,621 outstanding as of Feb. 1. Analysts have said a recent surge in buying from Icahn, who owned a 12 percent stake earlier in February, could be a prelude to his trying to exert influence on the company's board.

In a Monday filing, Icahn did say he "may seek to add nominees" to the board, expand it, and possibly remove board members. He said the action might come at Lions Gate's next annual meeting of sharehlders or at a special meeting he might demand.

A spokesman for Icahn's investment in Lions Gate declined to comment.

The company, based in Santa Monica, Calif. and Vancouver, British Columbia, fell to a wider-than-expected loss in the third quarter to Dec. 31 as movies such as "Transporter 3" and "The Spirit" underperformed and operating costs rose.

Its results widely missed Wall Street expectations.

The company lost $93.4 million, or 81 cents per share, compared with a profit of $7.3 million, or 6 cents per share, in the same period a year ago.

Revenue rose 8 percent to $324 million from $299 million a year earlier.

Subsequently, the company said it would cut its annual output by four, to a dozen films, beginning in April, after co-financing partner Pride Pictures withdrew support. CEO Jon Feltheimer said the future slate is "a little leaner, takes fewer risks."

The studio's Tyler Perry comedy, "Madea Goes to Jail," debuted at No. 1 at the domestic box office last weekend, raking in $41 million, the fifth best February debut ever.

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