LOS ANGELES, Dec. 15 (UPI) -- Corporate raider Carl Icahn is trying to engineer a merger of the Hollywood Video and Blockbuster video rental chains, Daily Variety said Wednesday.
The paper said Icahn has acquired nearly 10 million shares of Blockbuster, making him the video giant's largest single shareholder -- and inserting him into what it called "one of Hollywood's liveliest auctions," the sale of Hollywood Video.
Icahn said the purchase made him Blockbuster's single largest shareholder. He was already the largest shareholder in Hollywood Video, acquiring a 9.5 percent stake in that company over the past month.
Icahn's announcement came on the same day Blockbuster said it would eliminate most late fees for customers with overdue videos after Jan. 1. The company said customers would get a one-week grace period after the due date on movies and games -- and then they would automatically own the items, but they would have to pay for them.
