Ichan increases position in Lions Gate (LGF)

Carl Icahn has increased his stake in Lions Gate Entertainment (LGF) to 9.2 percent from 3.7 percent, raising fresh questions on Tuesday about the activist shareholder's plans for the independent movie and TV studio.....Icahn's affiliates now own about 10.8 million shares of the company.

"Lions Gate has been a perennial takeover candidate," said David Joyce, an analyst with Miller Tabak & Co. But he said Icahn may just be taking advantage of the lower share price.

"The lower share price made for an easy decision for anybody with cash like Icahn," he said, noting that Lions Gate generates more than $100 million in free cash flow annually.

"That kind of strong balance sheet and growing business plan could make it an attractive takeover candidate or a company that would buy back a fair amount of stock, which is why I think Icahn would buy it," he said. -Stock Article Link