Lionsgate investor threatens default

HOLLYWOOD, June 13 (UPI) -- A billionaire shareholder unhappy with the financial performance of Lionsgate films says he's prepared to push the company into bankruptcy.

Carl Icahn, locked in a battle for control of the company with its board of directors, sent a letter to the board Friday, The Hollywood Reporter said.

"I am truly mystified by some of your actions -- and your inaction -- in the face of the abject failure of the current management team to deliver value to shareholders," the letter said, "and I fear for the future of our company."

As part of a hostile takeover attempt offering $7 a share, Icahn is attempting to secure a stock share large enough to trigger a default on the company's debts, the Reporter said.

Lionsgate called Icahn's offer inadequate, Variety magazine reported.

"Lionsgate has a strong balance sheet and ample cash to continue driving shareholder value," the company said. "Shareholders should ask themselves why Mr. Icahn wants to acquire shares at U.S. $7.00 per share if he believes Lionsgate is at risk."