NEW YORK (
Lions Gate Entertainment
shares reached a 52-week high today after activist investor
upped his bid for the film studio company to $7.50 per share.
Icahn has been offering bids between $6.50 and $7.50 a share for more than a year, but the studio has yet to make a deal.
Lions Gate shares climbed to a
of $7.40 today, and are up almost 13% in midday trading to around $7.30.
In July, the company diluted Icahn's stake in the company to 33.5% from 37.9% by issuing Lions Gate director Mark Rachesky 16.2 million new common shares, increasing his stake to 28.9%.
In response, Icahn has asked the Supreme Court of British Columbia to rescind the extra shares controlled by Rachesky, or convert them into nonvoting stock.
"Given its recent decision to issue shares to an insider at $6.20 per share without conducting a market check, we would normally expect that the board must recommend that shareholders accept our offer of $7.50 per share, but with this board anything is possible," Icahn said in a statement.
The billionaire investor said his new offer will expire on October 22, and the Canadian court is scheduled to hear the case October 12.
-- Written by Theresa McCabe in Boston.
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