Carl Icahn Loses Lions Gate Bid

Carl Icahn's petition to undo a transaction between Lions Gate Entertainment and director Mark Rachesky is rejected.
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NEW YORK (

TheStreet

) --

Carl Icahn's

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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