SANTA MONICA, Calif. (
Lions Gate Entertainment
will consult with its advisors on whether to recommend that shareholders accept Carl Icahn's increased hostile bid of $7 a share from $6 for the Hollywood studio.
Lions Gate shares rose in after-hours trading Thursday by 48 cents, or 7.5%, to $6.85.
Commenting on the matter, Icahn told the
, "We do not feel comfortable that existing management is the right team to guide Lions Gate through this difficult period."
"The board continues to describe Lions Gate's horrible share performance as a tale of great success," he added in the letter, before pointing to a steep decline in its price from $11 a share to $6 a share over the last five year, where they have been trading recently. "What am I missing? Something does not add up," Icahn told the newspaper.