Has Lionsgate’s effort to sell 19.2M shares in the company owned by Carl Icahn been put “on hold,” as Reuters reported yesterday? The answer is: sort of, but not exactly. Yes, the company wanted to price the shares this week and hasn’t done so yet. Timing is important: Lionsgate is committed to pay Icahn $7 a share, and closed on Tuesday at $6.84. Still, the company has until October 18 to make the sale, and can price it almost at a moment’s notice. So Lionsgate is within the window to see if it can command a better price. That’s not a far-fetched idea. Its shares closed today at $7.02. If there’s no sale by the mid-October deadline, then Icahn simply hangs on to his shares — something that neither side seems to want.
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