Lionsgate's (LGF) syndicate of creditors agreed to increase the trigger point at which it deems a "change in control" has taken place at the movie studio, raising the bar Carl Icahn will have to hurdle in his hostile bid to buy the company. Under the $340 million revolving syndicated credit facility amendment, the change in control or ownership level now has to reach more than 50%. Previously, the level was 20%.
Earlier this month, Icahn threatened to raise his Lionsgate stake, then at 19%, above the previous credit facility threshold, noting that doing so could force the company into a default with its creditors, potentially pushing it into a voluntary bankruptcy.
Last week, Lionsgate announced that 68% of its shareholders had rejected Icahn's hostile bid of $7 a share. Lionsgate's shares were up 0.29% to $7.02 a share in mid-morning trading Tuesday.
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