Icahn buys more MGM loans to thwart Spyglass deal

LOS ANGELES Wed Oct 27, 2010 5:15pm EDT

Investor Carl Icahn speaks at the Wall Street Journal Deals & Deal Makers conference, held at the New York Stock Exchange, June 27, 2007. REUTERS/Chip East

Investor Carl Icahn speaks at the Wall Street Journal Deals & Deal Makers conference, held at the New York Stock Exchange, June 27, 2007.

Credit: Reuters/Chip East

LOS ANGELES (Reuters) - Carl Icahn on Wednesday said he was buying more debt in Metro-Goldwyn-Mayer to add to his stake as he seeks to block a pending deal between the studio and Spyglass Entertainment,.

Icahn said he has purchased a substantial amount of MGM senior secured loans at a purchase price of 50 cents per one dollar in principal amount. These purchases are in addition to a previously announced tender and put offer for the loans, Icahn said.

Icahn backs a rival proposal to merge MGM with Lions Gate Entertainment Corp.

(Reporting by Susan Zeidler; Editing by Gary Hill)