Wall Street states 'meh' to Lionsgate-Summit talks

'The Hunger Games'The prospect from the Lionsgate-Summit merger has triggered little reaction on Wall Street inside the wake of looks at the two minimajors are tease getting a merger. Shares of Lionsgate edged lower 1% on Tuesday getting a decline of 9 cents to $8.44. For your year, the stock expires 30%. Spokesmen for Lionsgate and Summit have rejected to comment since reviews of restarted merger talks emerged Monday mid-day following a market closed. Stifel Nicolaus analyst Ben Mogil launched an e-mail to traders Tuesday stating that Lionsgate will in all probability problem stock and unload TV Guide. "We view this kind of deal as getting limited operational synergies, largely foreign sales strength, although future Summit films could migrate to Lions Gate's Epix deal," Mogil mentioned. "With only one installment left inside the 'Twilight' series, earnings of the routine is pretty high and built-into valuation. The sale may very well largely involve Lionsgate stock as Summit (and Lionsgate) already carry substantial debt loads and likely accelerate an order of TV Guide." Experts have noted that Lionsgate may be reluctant to problem new stock until after March, if the opens "The Hunger Games" as an franchise starter. Mogil mentioned he is constantly rate Lionsgate just like a "hold" getting a $9 fair value estimate. More youthful crowd mentioned that this kind of deal might be then strong free earnings. "In the end will not opine round the merits until valuation is clearer, with Lionsgate stock now limited valuation, this kind of deal might well be accretive while potentially creating a strong fiscal 2013 between 'Hunger Games' and 'Twilight.'" The companies have held similar discussions formerly but people discussions have flattened over issues for instance who'd control the which makes it through entity. Independently possessed Summit introduced Tuesday that "The Twilight Saga: Breaking Beginning -- Part 1" had hit $508 million in worldwide box office within the first 12 days. The best "Twilight" film will open November. 16. Contact Dork McNary at dork.mcnary@variety.com