UPDATE 2-Icahn extends offer for Lions Gate

Tue Jun 1, 2010 2:19pm EDT

* Carl Icahn extends Lions Gate tender to June 16

* Waives minimum tender condition

* Lions Gate says shareholders reject Icahn offer again

* Says less than 4 pct holders tendered into offer (Adds Lions Gate says shareholders reject offer again)

LOS ANGELES, June 1 (Reuters) - Billionaire Carl Icahn on Tuesday extended his hostile tender offer for Lions Gate Entertainment Corp (LGF.N) and the company responded by saying the offer has once again been rejected by shareholders.

"Lions Gate's shareholders have demonstrated that they believe the Icahn Group's offer is financially inadequate," said the studio, home to the "Saw" movies and "Mad Men" television series, in noting that less than 4 percent of stockholders have tendered their shares.

Lions Gate, which has said it recently spoke with Icahn several times about his $7-a-share bid [ID:nN21189269], will report fourth-quarter results later on Tuesday.

The activist shareholder, who owns nearly 19 percent of Lions Gate, extended his tender offer to June 16 and disclosed on Tuesday that 4.7 million shares had been validly tendered.

The 4.7 million shares equal roughly 4 percent of the 118 million Lions Gate shares outstanding, according to ReutersCompany Views.

Icahn also said he waived a minimum tender condition. When his offer expires, Icahn will buy whatever shares are still tendered -- a reversal of his previous condition that he would buy shares only if doing so gave him control of the company. (Reporting by Susan Zeidler and Alex Dobuzinskis; Editing by Steve Orlofsky)

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