Billionaire investor Carl Icahn and the Lions Gate Entertainment Corp. film studio have agreed to temporarily halt their fighting and work together on acquisitions.
The agreement, announced Friday in regulatory filings after the market closed, isn't a permanent fix for the acrimony between Icahn and Lions Gate. The agreement lasts only 10 days — until July 19 — but could be extended.
The two sides didn't name any acquisition targets in their filings with the Securities and Exchange Commission announcing the accord.
They only said that they have agreed to work together on "certain acquisition opportunities" and that the company has agreed to refrain from certain actions during that period. One of those restrictions is Lions Gate can't do any deals without Icahn's approval that would require the issuance of common stock in excess of 5 percent of Lions Gate's currently outstanding stock.
Any deals involving the issuance of lots of shares would dilute Icahn's stake in Lions Gate and reduce his leverage.
Icahn has been trying to take over Lions Gate and force changes to the company's spending and its acquisitions strategy that he says will benefit shareholders.
Icahn's takeover bid fell short earlier this month when he failed to get enough shares, but with more than a third of Lions Gate's total shares under his control can still strongly influence how Lions Gate is run.
The two sides have been trading barbs for more than a year. Icahn disagreed with the company's decision to explore a bid for the Metro-Goldwyn-Mayer Inc. film studio.
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