Question: Need these 3 done please, please make sure it is right! This Question: 1 pt 20 of 31 (28 complete This Test: 31 pts possible
This Question: 1 pt 20 of 31 (28 complete This Test: 31 pts possible The Icahn Saga: The Poison Pill That lsn't Source: Lead Story-Dateline: Grover, Ron, "The lcahn Saga: The Poison Pill That lsn't," BusinessWeek.com, posted 2/16/2010. Seventy-four year old corporate raider Carl Icahn is after Lionsgate again with the launch of today's tender offer. Mr. Icahn attempted a takeover of the film maker in 2009 but was thwarted by management pointing out a bond covenant that would require accelerated payment of a large chunk of the company's debt. The poison pill would have required Lionsgate to come up with about $340 million in cash to pay off revolving credit at several banks. However, over the course of the last year Lionsgate paid the revolving credit down to about $12 million. Now the poison pill used before is not much of a deterrent since the company's 2009 revenues exceeded $1.2 billion. Some analysts believe Lionsgate is positioning itself to acquire other film makers. Icahn appears to fear the company's management will overpay for potential targets. Management insiders point out that "the credit line is cheap money" that is priced at only 2.5 points above LIBOR and is merely a cheap safety net. Thinking Critically Questions 1. An agreement protecting bondholders from managerial actions that would reduce the value of outstanding debt or impair repayment is called a(n) O A stock offering O B. dividend
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