MGM watch: Carl Icahn makes his move

Investor Carl Icahn made an offer to Metro-Goldwyn-Mayer Inc. debt holders he hopes they can’t refuse — and entice them to vote against a plan for Spyglass Entertainment to take control of MGM, which controls half of the James Bond franchise.

Here’s an excerpt from a Bloomberg.com story:

Carl Icahn offered to guarantee Metro-Goldwyn-Mayer Inc. lenders a minimum price for the film studio’s debt if they vote with him to block a plan to turn over management of the company to Spyglass Entertainment.

The 74-year-old billionaire offered lenders the right to sell him MGM’s senior secured loans for 45 cents on the dollar, about what they have fetched in recent trades. The offer is conditioned on acceptance by holders of $963 million of the Los Angeles-based studio’s debt, Icahn said today in a statement.

Icahn supports an alternative proposal by Lions Gate Entertainment Corp. to acquire MGM for as much as $1.8 billion in equity and debt.

You can read the entire story by CLICKING HERE.

MGM debtholders have until Oct. 29 to vote on the Spyglass plan, which would also involve a trip into bankruptcy court in a “prepacked bankruptcy.”