Image Hires Adviser for Bid

Image Entertainment (DISK Quote) hired Salter Group to advise on last week's unsolicited bid from Lions Gate Entertainment (LGF Quote).

Salter is a Los Angeles-based media and entertainment financial adviser specializing in valuation. Image, an independent film licensee, producer and distributor, received a bid from Canada's Lions Gate last week. Terms of the proposal weren't disclosed, but Image soared more than 50% on word that it would consider the bid and other possibilities to increase shareholder value. At the same time, the Chatsworth, Calif., company stressed it isn't for sale.

Lions Gate, a large independent film producer based in North Vancouver, British Columbia, already holds a significant stake in Image, which is best known for licensing films and music and taking DVDs to retail. Image has some 3,000 DVD titles, 175 CDs and also sublicenses programming abroad.

Image said last week in disclosing the bid that "in recent public filings, Lions Gate Entertainment stated it has acquired 4,033,996 shares, or 18.98%, of Image Entertainment's currently outstanding shares of common stock, and that it 'believes that the acquisition of the company would be consistent with its desire to broaden and deepen its library of filmed entertainment, as well as to add an important musical component to its business, and to otherwise further (it)s business objectives and increase shareholder value.'"

Image was trading down 3% on Monday morning to $4.29. Lions Gate fell 52 cents to $9.99.