* Rachesky's MHR Fund holds about 19.8 pct of its stock
* MHR to support management's slate
* Lions Gate stock closes up 2.1 percent
(Adds quotes from Lions Gate vice chairman)
By Sue Zeidler
LOS ANGELES (Reuters) - Lions Gate Entertainment Corp said Thursday it would name
Rachesky, who formerly worked with Icahn, is co-founder and president of MHR Fund Management LLC, which holds about 19.8 percent of Lions Gate's common stock. Lions Gate said it would announce the remainder of its board slate in the near future.
MHR Fund Management said in a statement it will support Lions Gate's slate of board of directors nominees at the annual shareholders meeting in September.
"I look forward to joining the Lions Gate board of directors and assisting management in its mission to continue building shareholder value," Rachesky said in a statement.
Shares of Lions Gate, home to the "Saw" horror film franchise, closed up 12 cents, or 2.1 percent, at $5.77 on the
Analysts have said naming Rachesky to the board would be a good defensive measure against Icahn, who holds a 16.9 percent stake in Lions Gate. Icahn has criticized Lions Gate for overspending and may wage a proxy battle.
Icahn-controlled affiliates said last month they had discussions with Lions Gate Chief Executive Jon Feltheimer and
When asked in an interview whether he expected Icahn to field a slate, Lions Gate vice chairman Burns said:
"He's been adding to his position. I think he's going to continue to add to his position and voice his points to get those across. We'll be respectful of such a world class iconic investor who happens to be our second-largest shareholder," said Burns.
He said Lions Gate had had communication with Icahn.
"We have a lot of conversations with all of our shareholders including Carl," he said, but declined to discuss specifics.
Icahn also tried unsuccessfully this year to buy $325 million worth of convertible notes issued by the studio in the hope of converting them to equity to raise his stake to 29 percent. Icahn was not available for comment on Thursday.
Lions Gate has said a change in control of the company -- which could be triggered by Icahn's reaching a 20 percent stake to surpass that of Rachesky -- could cause a debt default and accelerated payment obligations on its credit facility.
Lions Gate sold a 49 percent stake in the TV Guide channel for about $123 million last month.
The independent TV and movie studio recently reported a fiscal fourth-quarter net loss of 25 cents per share, compared with a profit of 22 cents per share a year earlier.
Revenue fell almost 10 percent to $463.2 million for the quarter ended March 31, from $511.6 million a year earlier. (Reporting by Sue Zeidler; Editing by
