Tuesday, January 17, 2012

Summit deal drives Lionsgate stock surge

Companies release further merger details

Lionsgate shares hit a 52-week high in early trade, opening up more than 5% at $9.04 from their close of $8.60 on Friday after the company announced the acquisition of Summit Entertainment. Lionsgate also said in SEC filings that Summit's owners could pocket up to $7.5 million above and beyond the indie studio's purchase price if the last two "Twilight" movies "exceed prescribed thresholds."
The company unveiled some details, including the bonus for "The Twilight Saga: Breaking Dawn -- Part 1" and "The Twilight Saga: Breaking Dawn -- Part 2," of the $412.5 million merger agreement in a Securities and Exchange Commission filing Tuesday even as Wall Streeters after a long holiday weekend began to weigh in on the deal, announced Friday. The reaction remains upbeat although investors are still looking for details on Summit financials that Lionsgate said in its filing it might issue later on.
 For more on the article http://www.variety.com/article/VR1118048733 

No comments:

Post a Comment