Lions Gate Entertainment Corp.’s deal to increase the number of shares held by board member Mark Rachesky, a move challenged by hostile suitor Carl Icahn, was upheld by a Canadian court.
Icahn’s petition to undo the deal was dismissed, the British Columbia Supreme Court said in a ruling Monday that was provided by Lions Gate’s attorneys. Icahn, who is attempting to buy the independent film and TV studio for $7.50 a share, argued management conspired with large shareholders to thwart his bid.
Icahn was seeking to reverse an equity-for-debt swap that hindered his hostile bid for the studio by putting more shares in the hands of Rachesky, who has backed management in the takeover fight.
•CLICK HERE to read the Bloomberg News story.
