Hey Carl, Thanks But No Thanks

Carl Icahn's unsolicited tender offer for shares of Lions Gate has been shot down by the studio's board of directors.

The board of directors at Lions Gate turned down an unsolicited tender offer from Carl Icahn, saying today that the offer was "financially inadequate and coercive."

The offer, which was for 13,164,420 shares of Lions Gate at $6 a pop, would have upped his stake in the studio to around 30 percent. The stock closed trading on Thursday at $5.67 a share.

Another reason for the rejection of the bid could be a change-of-control item in the company. Should any stakeholder gain more than 20 percent of the studio, it could result in a default on its $340 million credit line.

Icahn, 74, and the studio have been connected for more than a year. The billionaire corporate raider was highly critical of the company's purchase of the TV Guide Channel. In a not-so-great coincidence, Icahn's latest offer came as Lions Gate has been rumored to be among the potential suitors for the MGM film library and the Miramax label and film library.

After the offer, he told the Los Angeles Times: "I'm quite concerned about them paying too much for acquiring a library like MGM or Miramax, especially in light of the precipitous decline in the value of libraries."