Lions Gate angling to buy DVD distributor Image

Movie and television producer and distributor Lions Gate Entertainment Corp. is trying to negotiate a deal to buy California-based DVD distributor Image Entertainment Inc. In a letter sent to Image's chairman in August, Lions Gate chief executive officer Jon Feltheimer proposed a deal where shares of Image would be exchanged for those of Lions Gate. Due diligence has not been completed and no deal has yet been negotiated, a filing with the U.S. Securities and Exchange Commission revealed yesterday. But Lions Gate has been busy buying up Image shares. It has already accumulated about 19 per cent of the public float. LGF (TSX) fell $1.13 (Canadian) to $12.21.