Last week activist investor Carl Icahn entered into agreements with two companies, Hain Celestial Group (HAIN) and Lions Gate Entertainment Corp. (LGF). According to Hedge Fund Solutions’ Catalyst Research Report, Hain Celestial Group will appoint two individuals recommended by Mr. Icahn (including his son, Brett Icahn) to the company’s board, and the company will also create a committee of the board to consider strategic transactions. Lions Gate Entertainment has agreed to work together with Mr. Icahn on certain acquisitions between July 9 and 19, and the company will not engage in active negotiations for any transaction that would involve over 5% of the current outstanding stock.
Mr. Icahn’s hedge fund owns 44,772,451 shares in Lions Gate, representing 37.9% of the company’s shares outstanding. Icahn has steadily increased his ownership in the company since October of 2008. On March 19 of this year he offered to purchase all of Lions Gate for $6.00 a share, and on April 15 raised the amount to $7. He has also indicated his intention to run a proxy contest at the next annual meeting to replace the entire board of directors.
Mr. Icahn has also increased his ownership position in Hain Celestial Group from 11.92% in May to 13.24% in July and now owns 5,407,546 shares in the company. |
