Lions Gate has no plans to raise MGM bid-sources

NEW YORK/LOS ANGELES, March 25 (Reuters)- Lions Gate Entertainment (LGF.N) has decided it will not increase its offer for Metro-Goldwyn-Mayer after being told it was outbid by Time Warner Inc (TWX.N), two sources familiar with the matter told Reuters on Thursday.

Lions Gate and billionaire Len Blavatnik's industrial holding company Access Industries had put in second-round bids ranging from $1.2 to $1.4 billion for the famed studio, but Time Warner outdid them with a $1.5 billion bid, Reuters reported on Monday.

The decision to retreat on MGM comes after billionaire investor Carl Icahn offered to buy Lions Gate in a move that was designed to hinder the studio's bid for MGM. Icahn owns about a 19 percent stake in Lions Gate.

Time Warner has been seen as the most likely buyer for the studio, which is home to the James Bond and Pink Panther franchises.

MGM and Lions Gate were not immediately available for comment. (Reporting by Jui Chakravorty in New York and Sue Zeidler in Los Angeles; Editing by Tim Dobbyn)