The board of Lions Gate is urging shareholders today to reject Carl Icahn's most recent bid for control of the studio.
Icahn upped his bid from $6 to $7 amid rising share prices last week and the Santa Monica studio's release of "Kick-Ass," which topped weekend move ticket sales. Lions Gate stock was trading around $6.80 per share early today.
"We believe that the offer pales in comparison to the value inherent in the world class platform we have established over the past 10 years," said Jon Feltheimer, Lions Gate co-chairman and CEO.
Icahn, a billionaire, already owns about 19 percent of the common stock and upped his takeover bid April 15.
The basis for the recommendation by a special board committee is contained in an amended Schedule 14D-9 filed today with the Securities and Exchange Commission.
Lions Gate has schedule a May 4 shareholders meeting, where they will be asked to endorse a defensive posture.