Lions Gate is offering to combine its business with MGM in a deal supported by billionaire investor Carl Icahn, who owns stakes in both studios.
Lions Gate Entertainment Corp. said Tuesday it has sent a proposal for a combination with financially-troubled Metro-Goldwyn-Mayer Studios Inc. Terms weren't disclosed.
Lions Gate says the combined company would be owned by its shareholders and by MGM's creditors. These include Icahn.
ICahn says the deal is better than a current proposal to combine MGM with privately held production company Spyglass Entertainment.
Icahn has been trying to buy Lions Gate for more than a year but has been rebuffed by the boutique film studio. Icahn's tender offer for Lions Gate worth $7.50 per share expires Oct. 22.
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