Lions Gate Rejects Carl Icahn's Board Slate

Lions Gate rejects Carl Icahn's nominees to the studio's board of directors, ending the year-long power struggle between management and the activist investor.
By Theresa McCabe ,

NEW YORK (

TheStreet

) --

Lions Gate Entertainment

(LGF)

investors have rejected Carl Icahn's five nominees to the studio's board of directors, ending the year-long power struggle between management and the activist investor.

Investors appointed all company nominees to the board today at the Lions Gate shareholder meeting, a day after the billionaire withdrew his longstanding $7.50 per share buyout bid.

>>Icahn Pulls Lions Gate Bid

"Today's outcome reaffirms that Lions Gate shareholders continue to have confidence in the board's and management team's strategy to enhance value for all Lions Gate shareholders," the company said in a statement.

Carl Icahn

pulled his bid for the studio yesterday after the New York State Supreme Court ruled that director Mark Rachesky could keep his increased voting power.

In July, Icahn asked the court to rescind a number of Rachesky's shares after the company increased his stake to 28.9%, which diluted Icahn's stake to 33.5% from 37.9%.

The

Supreme Court of British Columbia also rejected his petition

to undo the deal in November.

The 74-year-old billionaire wanted to retract Rachesky's voting powers before today's meeting in order to persuade shareholders to support his takeover plan.

A full trial on the matter will be held sometime in the next few months. Lions Gate is scheduled to hold its next shareholder meeting in September 2011.

-- Written by Theresa McCabe in Boston.

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