UPDATE 2-Lions Gate to nominate Rachesky to board

* Rachesky's MHR Fund holds about 19.8 pct of its stock

* MHR to support management's slate

* Lions Gate stock closes up 2.1 percent (Adds quotes from Lions Gate vice chairman)

By Sue Zeidler

LOS ANGELES, July 9 (Reuters) - Lions Gate Entertainment Corp (LGF.N) said on Thursday it would name Mark Rachesky, its largest shareholder and a supporter of management, to its slate of board nominees as it faces continued pressure from billionaire investor Carl Icahn.

Rachesky, who formerly worked with Icahn, is co-founder and president of MHR Fund Management LLC, which holds about 19.8 percent of Lions Gate's common stock. Lions Gate said it would announce the remainder of its board slate in the near future.

MHR Fund Management said in a statement it will support Lions Gate's slate of board of directors nominees at the annual shareholders meeting in September.

"I look forward to joining the Lions Gate board of directors and assisting management in its mission to continue building shareholder value," Rachesky said in a statement.

Shares of Lions Gate, home to the "Saw" horror film franchise, closed up 12 cents, or 2.1 percent, at $5.77 on the New York Stock Exchange.