WASHINGTON (dpa-AFX) - CBS corp. (CBS-A, CBS) offered $5 billion to buy Lionsgate Entertainment's (LGF-A, LGF-B) pay-TV channel Starz about two months ago but was rejected, according to report citing people familiar with the matter.
Shares of Lions Gate rose as much as 14% on Friday after a report from The Information about the offer.
Lions Gate board felt the offer undervalued Starz, the report said.
However, Lions Gate executives believe the company fits well within CBS and are open to the idea of selling to CBS or a combined CBS-Viacom at a higher price. CBS isn't interested in buying the entirety of Lions Gate, the report said.
LGF-A closed Friday regular trading at $15.60, up $2.00 or 14.71 percent. But, in the after-hours trade, the stock down $0.20 or 1.28 percent.
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