Deliberately delayed proxy with Icahn’s nominees for Lions Gate?

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There appears to be a delay (by design?) concerning the ‘gold proxy’ vote instruction form for Carl Icahn’s nominees for directorships at Lions Gate (LGF).

Lions Gate’s annual shareholder meeting is tomorrow, Tuesday, December 14. I received the company’s white and most recently its blue proxy cards via mail over the past week or two. However, Icahn’s gold proxy just arrived today, the day prior to the meeting. Note that I am located a mere 2 1/2 hour drive from where the proxy vote materials were purportedly sent. Receiving the materials a day in advance of the meeting is unreasonable and suggests it could be by design. Who is to know if someone was told to sit on the materials and delay their sending. For a packet that was supposed to be ready for delivery on the 6th of December to take a full week to arrive in a neighboring state naturally raises suspicion. We shall see if we can learn if there is a story behind this. Continue reading

Lions Gate: Board dereliction and insanity

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Lions Gate (LGF) reported a surprise Q1 loss of $64.1M or $0.54/share compared to earnings of $36.3M ($0.30/share) last year — note that adjusted earnings of a net loss of $13.7M ($0.10/share) missed analyst expectations of a profit of $0.04/share. The cash flow picture is not pretty either as the business was kept cash flow positive by a $243M senior revolving credit facility. While Carl Icahn continues to battle for control of Lions Gate, my message, which I’m sure I share with other individual shareholders, is “show me the money.” (Click hyperlink for 4/28/10 post discussing Icahn v LGF). Unfortunately, LGF is losing money, the Board is giving away money to management and the militia of advisors hired to thwart Icahn, and meantime, to prove a point, Icahn has lowered his bid to $6.50/share from $7/share previously. Continue reading

To Lions Gate and Carl Icahn: Show me the money

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The Carl Icahn v. Lions Gate battle rages on. Unfortunately it features no real suspense; rather, it’s playing out more like a bad dream, in a bad movie. While the Post Office and the related parties’ legal counsel and financial advisers all must be happy to have the work, I’m strictly thinking TiVo: fast-forward past both sides’ rhetoric and “show me the money.” As a long-time Lions Gate shareholder, I of course agree with Lions Gate’s board and its advisor Perella Weinberg, that Mr. Icahn’s $7/share offer is financially “inadequate.” At the same time, I am as perplexed as Mr. Icahn is regarding Lions Gate’s “public relation machine’s” touting of its “horrible share performance as a tale of great success.” Continue reading