GO
Loading...

Halftime: Icahn May Consider 'Other Avenues' To Acquire Lions Gate

Forget the dramas they produce on screen, the real life drama involving Lions Gate and Carl Icahn is worthy of a movie, all its own.

And like all good stories that keep you on the edge of your seat, this one involves a twist right when you weren't looking.

Just one day before shareholders must decide whether to take advantage of Carl Icahn's hostile $7-per-share offer to take over the company, Lions Gate may have turned the tables.

In an unexpected move, the Vancouver-based TV and film studio pre-announced results, that were significantly better than expected.

Specifically, Lions Gate said its preliminary fiscal-year 2010 adjusted earnings (before interest, taxes, depreciation and amortization) will exceed $115 million.

That's more than 50 percent better than the $75 million the company had expected previously.

Separately, Lions Gate also pushed back its vote on Carl Icahn's takeover bid to May 12th.

Before that vote, on May 3rd, Lions Gate will ask a Canadian court to overturn a regulator’s decision invalidating a “poison pill” designed to thwart Carl Icahn’s hostile takeover bid.

What does all this mean for Icahn and his $7 a share bid?

We went right to the source.

Icahn tells Fast Money “I’m making what I consider to be a very, very fair bid at $7.” And "We're paying a large premium."

And he’s hopeful that he will obtain 51% and take over the company.

”We’ve taken over many companies in different ways and we’ve done well when we’ve gotten in there,” Icahn says.

Earlier in the day Lions Gate reiterated to CNBC that they found Icahn’s bid to be woefully inadequate. (That’s something Lions Gate Vice Chairman Michael Burns first told Fast Money on March 24thClick here for that interview.)

Of course Icahn doesn’t see it that way.

Icahn says the stock was trading around $4.75 when he established his position in February and believes the only reason the stock is at its current levels is because – knowing he’s an activist shareholder - other investors often follow him into a name.

And what happens if Icahn loses? Well, he doesn’t sound like he’s ready to throw in the towel.

”If we don’t get it then we don’t get it and we probably have a proxy fight.” And he went on to suggest he’s also ready and willing to pursue "other avenues" though he didn't disclose specifics.

What’s the trade?

I happen to think Lions Gate is cheap, says Fast Money trader Guy Adami. I think the stock is worth much more than $7 and it wouldn’t surprise me to see Carl Icahn pay up.

* Want to know more? For everything that Carl Icahn told us. Watch the video above.

-----

THE MARKETS

Looking at the market broadly, stocks rose sharply on Thursday after Greece neared a bailout deal as jobless claims and earnings supported the Federal Reserve's positive view of the economy.

What must you know to trade, Thursday?

I think it’s all about the short squeeze, says Steve Grasso. The shorts thought this was going to be their day in the sun but it wasn’t. Investors are afraid to be short and that’s lifting all boats.

-----

TOPPING THE TAPE: BIDU

Baidu, China's most popular search engine, rallied sharply on Thursday after it announced profit more than doubled as well as a 10-for-one stock split.

What’s the trade?

Looking at the technicals, I'd play for convergence at this point, says Carter Worth. I would realize gains in BIDU and put the money to work in GOOG.

-----

TOPPING THE TAPE: MOTOROLA

Motorola topped the tape on Thursday after the company reported a surprise beat for the quarter. The firm also said it sold more smart-phones than Wall Street anticipated in the first quarter.

What’s the trade?

In the smartphone space, I’d sticking with RIM and Apple , says Zach Karabell.

-----

CALL THE CLOSE

Guy Adami: Long term I’m bearish but you can’t fight the tape.
Zach Karabell: I think we’re range bound and I’d look at individual names.
Steve Grasso: I think we’re going higher.
Carter Worth: I think we’ll be lower by the close.


______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On Apr 29, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (INTC), (GS), (AGU), (BTU), (NUE), (MSFT), (C); Karabell Owns (GOOG), (AAPL), (RIMM), (GS); Grasso Owns (NDAQ), (DYN), (LPX), (ASTM), (ABK), (BAC), (BGP), (C), (CVGI), (JPM), (NEM), (PRST), (PFE), (BA), (T), (CSCO), (X); Najarian Owns (AKAM) Call Spread; Najarian Owns (C) Calls; Najarian Owns (CBS) Call Spread; Najarian Owns (CELG); Najarian Owns (GOOG) Calls; Najarian Owns (JEF) Calls; Najarian Owns (KGC) Calls; Najarian Owns (PFE); Najarian Owns (PG) Calls; Najarian Owns (YHOO) Call Spread; Najarian Owns (XOM) Call Spread; Finerman's Firm Is Short (IJR), (IWM), (MDY); Finerman's Firm Is Long S&P Puts; Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Leap; Finerman Owns (BAC), (BAC) Preferred; Finerman Owns (GOOG); Finerman's Firm And Finerman Own (JPM); Finerman's Firm Owns (MCD); Finerman's Firm And Finerman Own (RIG), (RIG) Calls; Finerman's Firm Owns (YUM); Finerman's Firm Owns (GLW); Najarian Owns (XOM) Call Spread; Stutland Owns (GLD) Using Bull Option Spreads; Kelly Owns (FXE) Puts; Kelly Owns (AUY) Calls

For Anthony Scaramucci
Scaramucci Owns (AAPL), Skybridge Owns (AAPL); Scaramucci Owns (BAC), Skybridge Owns (BAC); Scaramucci Owns (C), Skybridge Owns (C); Scaramucci Owns (GOOG), Skybridge Owns (GOOG); Scaramucci Owns (GS), Skybridge Owns (GS); Scaramucci Owns (HPQ), Skybridge Owns (HPQ); Scaramucci Owns (INTC), Skybridge Owns (INTC); Scaramucci Owns (JPM), Skybridge Owns (JPM); Scaramucci Owns (MCD), Skybridge Owns (MCD); Scaramucci Owns (VIA.B), Skybridge Owns (VIA.B); Scaramucci Is Long U.S. Dollar, Skybridge Is Long U.S. Dollar; Scaramucci Owns (MRK), Skybridge Owns (MRK)

For Maynard Um
UBS AG, Affiliates Or Subsidiaries Own 1% Or More Of (AAPL)
(DELL), (HPQ), (MOT) Is Or In Past 12 Months Has Been An Investment
Banking Client Of UBS Securities LLC
(AAPL), (DELL), (MOT) Is Or In Past 12 Months Has Been A Client Of UBS Securities LLC (Non-Securities Services)
UBS Securities LLC Has Received Compensation From (AAPL), (DELL), (HPQ), (MOT) In Past 12 Months

For Brian Stutland
Stutland Equities Is A VIX Market Maker, Has A Long Position, Is Short Volatility

For Brian Kelly
Kanundrum Capital Owns (AUY)
Kanundrum Capital Owns (GFI)
Kanundrum Capital Owns (TLT)
Kanundrum Capital Owns U.S. Dollar
Kanundrum Capital Is Short (DB)
Kanundrum Capital Is Short (BCS)
Kanundrum Capital Is Short Euro
Kanundrum Capital Is Short Yen
Kanundrum Capital Is Short Franc
Kanundrum Capital Is Short (CLF)
Kanundrum Capital Is Short (AA)

For Steve Grasso
Stuart Frankel And Its Partners Own (AMR)
Stuart Frankel And Its Partners Own (BAX)
Stuart Frankel And Its Partners Own (DYN)
Stuart Frankel And Its Partners Own (CUBA)
Stuart Frankel And Its Partners Own (DYN)
Stuart Frankel And Its Partners Own (GERN)
Stuart Frankel And Its Partners Own (HSPO)
Stuart Frankel And Its Partners Own (MERC)
Stuart Frankel And Its Partners Own (NWS.A)
Stuart Frankel And Its Partners Own (NYX)
Stuart Frankel And Its Partners Own (PALM)
Stuart Frankel And Its Partners Own (PDE)
Stuart Frankel And Its Partners Own (PFE)
Stuart Frankel And Its Partners Own (PRST)
Stuart Frankel And Its Partners Own (RDC)
Stuart Frankel And Its Partners Own (TLM)
Stuart Frankel And Its Partners Own (XRX)
Stuart Frankel And Its Partners Own (SDS)
Stuart Frankel And Its Partners Are Short (QQQQ)
Stuart Frankel And Its Partners Are Short (CL)
Stuart Frankel And Its Partners Are Short (AAPL)



CNBC.com with wires

Symbol
Price
 
Change
%Change
S&P 500
---
BIDU
---
LGF
---
BB
---
AAPL
---

Contact Halftime Report

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET