MGM to dispute savings from Lions Gate deal: report

(BestGrowthStock) – Film Studio Metro-Goldwyn-Mayer Inc plans to make public a merger proposal from Lions Gate Entertainment Corp to dispute the purported cost savings, the New York Post reported, citing an unnamed source.

On Thursday, billionaire investor Carl Icahn offered to buy senior debt from creditors willing to vote down the company’s preferred deal with Spyglass Entertainment.

Icahn, who says he has a “significant” position in MGM, is pushing an alternative proposal to merge the heavily indebted film studio with Lions Gate Entertainment Corp, in which he also has a large stake.

The Post said MGM intends to release a July proposal in which Lions Gate offered MGM lenders a 50-50 split in the combined company instead of the current 45-55 proposal, which was outlined more recently in a letter to MGM.

Lions Gate could not immediately be reached for comment by Reuters outside regular U.S. business hours.

(Reporting by Anand Basu in Bangalore; Editing by Will Waterman)

MGM to dispute savings from Lions Gate deal: report