Given widespread reports that MGM's largest creditors prefer The Deal offered by Spyglass Entertainment that would convert their debt into 95 percent ownership of a new company headed by Spyglass chiefs Gary Barber and Roger Birnbaum, maverick investor Carl Icahn is sweetening the deal he has offered them. On Tuesday, he raised his tender offer to buy a majority of MGM's $4 billion in debt to 53 cents on the dollar. The offer is conditioned on debt holders selling at least $1.6 billion worth of MGM debt to him, which, with the $500 million that he already owns, would give him full control of the studio and allow him to push forward with his plan to merge MGM with Lionsgate, where he is the largest shareholder. Icahn's offer expires on Friday, the same day creditors' votes are due to be tallied on the Spyglass proposal.

27/10/2010