Terms determined to be too low.
Home video distributor Image Entertainment yesterday (Oct. 31) rejected a purchase proposal from Lions Gate Entertainment.
A special committee of Image's board of directors said that the terms of Lions Gate's bid—which were not revealed—were too low for its stockholders.
Lions Gate first made a move to acquire Image when it purchased about 19%, or more than 4 million shares, of Image in September.
Image has also announced the creation of a stockholders rights plan to "protect the interests of stockholders by discouraging coercive, unfair or abusive takeover tactics that do not offer fair value to all stockholders," according to a statement.