Lions Gate Faces another Loss in War with Icahn
|May 9th, 2010||
|Lions Gate Entertainment faces another setback in its battle with Carl Icahn as its attempt to reinstate a poison pill to thwart Icahn’s takeover attempt was denied by the British Columbia appeals court. The British Columbia Securities Commission annulled Lions Gate’s poison pill on April 26 after it was determined that the pill was implemented by management without the proper shareholder approval. The poison pill aimed to prevent Carl Icahn’s takeover bid of the Santa Monica film and television studio by allowing shareholders to buy stock at a discount in order to dilute Icahn’s ownership percentage.|
Lions Gate will now put the poison pill to a shareholder vote on May 12.
Carl Icahn’s tender offer of $7 per share is set to expire on May 10. The dismissal of the appeal should bolster Icahn’s takeover attempt as many investors were reluctant to sell their shares if the poison pill were to be reinstated. Icahn’s offer was originally set to explode on April 30 but was extended until May 10.
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