The bulldog investor has had plenty to say lately about the online auction site’s management. And he continued to vent in a post on his Shareholders’ Square Table site today. But while he was at it, Carl Icahn landed a broadside against Lionsgate, the mini-major that thwarted Icahn’s takeover attempt awhile back. Icahn cites the SEC failure-to-disclose charges against Lionsgate that resulted in a $7.5M settlement deal this month. “In headline grabbing news,” Icahn wrote, “the SEC charged the film and television distribution company Lions Gate Entertainment Corp. (please indulge me if I refer to this affair as ‘Liar Gate’) with failing to fully and accurately disclose to investors key information relating to management’s participation in a set of extraordinary corporate transactions that put over 16 million newly issued company shares in the hands of a management-friendly director at a price of $6.20 per share (the price of those shares was $33.26 per share at market close on March 12, 2013 (the day before announcement of the SEC’s order), creating a total spread of almost $440 million that could have inured to the benefit of all Lions Gate shareholders had such transactions not occurred.
“Liar Gate drives home the lesson that if stockholders want the best from and for the companies they own, they cannot just sit back and let self-interested corporate bureaucrats make decisions based on the counsel of advisors who have few incentives to look out for stockholders and cannot always be relied upon to bring proper ‘adult supervision” to the board room.” Zing. You can read his full rant in a proxy statement to the SEC here.
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