(Reuters) - The board of Lions Gate Entertainment urged shareholders to vote against billionaire investor Carl Icahn’s $6-a-share offer to acquire the studio.
In a letter to shareholders, the board said the offer is insufficient and does not reflect the value that recent investments made by the company are expected to create.
The board also urged shareholders to confirm Lions Gate’s shareholder rights plan in a move to thwart Icahn’s offer.
Lions Gate has scheduled a special meeting of shareholders on May 4 to vote on Icahn Group’s offer and the shareholder rights plan, or poison pill.
The company also said it expects revenue of $1.5 billion in the year ended March 31. Analysts on average are expecting revenue of $1.59 billion, according to Thomson Reuters I/B/E/S.
Icahn said on March 29 that his offer for Lions Gate was fair and that the only reason the company’s stock was trading above $6 was because of him.
Lions Gate shares were trading down 1 percent before the bell on Monday, after closing at $6.24 on the New York Stock Exchange on Friday. (Reporting by Saumyadeb Chakrabarty in Bangalore; Editing by Mike Miller)