Carl Icahn Loses Lions Gate Bid
NEW YORK (
) --
petition to undo a transaction between
Lions Gate Entertainment
(LGF)
and director Mark Rachesky was rejected in the Supreme Court of British Columbia.
Activist investor
Carl Icahn has been offering bids to buy the studio
for between $6.50 and $7.50 a share for more than a year.
|
In July, the company diluted Icahn's stake in the company to 33.5% from 37.9% by issuing Lions Gate director Mark Rachesky 16.2 million new common shares, increasing his stake to 28.9%.
In response, Icahn asked the court to rescind the extra shares controlled by Rachesky, or convert them into nonvoting stock.
The Canadian court rejected his petition to undo the deal.
Lions Gate is the distributor of the
Saw
horror films. Its most recent movie,
Saw 3D
, was No. 1 at the box office this past weekend.
Lions Gate shares are up more than 24% this year, and are up 0.8% today to just below $7.30.
-- Written by Theresa McCabe in Boston.
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RELATED STORIES:
>>'Saw 3D' Tops Weekend Box Office
>>MGM Creditors Approve Reorganization
>>Lions Gate Reportedly Sues Icahn
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