Icahn Boosts Lions Gate Holdings To 16.9 Pct

LOS ANGELES (AP) — Billionaire investor Carl Icahn has increased his stake in boutique movie studio Lions Gate Entertainment Corp. to 16.9 percent, according to filings with the Securities and Exchange Commission on Wednesday.

Companies that Icahn controls bought 1.5 million shares that cost an average $5.30 since June 5, the last time he reported his holdings, the filing said. He now controls 19.8 million shares.

Icahn has steadily been increasing his equity position since his tender offer for outstanding convertible bonds in Lions Gate failed to find many takers last month.

The largest shareholder, Mark Rachesky, Icahn's former chief investment adviser, controls just short of 20 percent of the company.

Rachesky is expected to be named to management's slate for a seat on the board. Icahn has been critical of management and may try to shake up the board at the company's annual shareholders meeting in September.

Lions Gate is the studio behind the "Saw" horror franchise and produced "Nurse Jackie" for CBS Corp.'s Showtime pay TV channel.

Lions Gate shares closed down 9 cents, or 1.7 percent, at $5.22 on Wednesday.