Lions Gate Could See New Partnership With MGM

Yesterday Carl Icahn offered a lower bid on Lions Gate Entertainment Corp. LGF which could possibly see more involvement with MGM, due to its close relationship with JP Morgan (its lead bank). JP Morgan possesses intimate knowledge of MGM from the Kirk Kerkorian days, and the partnership can lead to new degrees of freedom, according to Wunderlich. The bid from Icahn was lowered from $7.00 to $6.50, a scaling down tactic due to weak equity. Wunderlich maintains its "buy" rating and the price target remains at $8.50. Lions Gate closed yesterday at $6.53.