Carl Icahn, who only a few months ago slammed the management of Lionsgate for considering a possible acquisition of MGM, apparently now believes that such a buy might not be such a bad idea after all. Both the Wall Street Journal and the Los Angeles Times reported today (Friday) that Icahn has been holding talks with MGM creditors in an effort to persuade them that a deal with Lionsgate would be more advantageous than the one it is close to completing with Spyglass. Icahn has been actively buying up MGM debt and reportedly has informed MGM creditors that he now owns about 10 percent of the debt. Simultaneously, he has also been increasing his stake in Lionsgate, although he has been unsuccessful in his effort to persuade Lionsgate shareholders to sell are their holdings in The Company to him.

01/10/2010