Tags: US | Lions | Gate | Icahn

B.C. Regulators Quash Lions Gate Poison Pill

Wednesday, 28 Apr 2010 11:11 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

Regulators in British Columbia on Tuesday voided a shareholders rights plan by Lions Gate Entertainment Corp. that would have prevented a takeover attempt by investor Carl Icahn.

A British Columbia Securities Commission spokeswoman confirmed the decision, which halts the trading of any securities that would be issued under the plan, rendering it ineffective.

Icahn said in a statement the decision will allow shareholders in the movie studio to decide for themselves whether they will sell shares to him for his offer price of $7 apiece "without interference from the board."

Lions Gate's shares jumped 45 cents, or nearly 7 percent, to $7.07 in after-hours trading on Tuesday. That suggests investors still believe a higher bid will emerge.

The decision was a major victory for Icahn, who holds a nearly 19 percent stake in the Vancouver-based company, which is operated out of Santa Monica. He had earlier offered to buy shares for $6 but sweetened his bid two weeks ago when the company opposed it. Lions Gate also opposed the $7 offer, calling it too low.

If Lions Gate's shareholders rights plan had been allowed by the commission, it would have allowed the company to issue shares in a such a way as to massively dilute the shares of any hostile bidder if his stake exceeded 20 percent.

Lions Gate said in a statement Tuesday that it was "disappointed" by the ruling and was considering all its options, including an appeal. It continued to urge shareholders to vote in favor of the rights plan at a May 4 meeting and to reject Icahn's bid.

Icahn said in a statement he was "gratified" the commission agreed with his view and said the ruling was "consistent with its vision to play a leading role in securities regulation that inspires investor confidence."

The commission did not explain its ruling. It has 90 days to state its reasons.

Icahn's offer expires on Friday at 8 p.m. EDT, although he said he may extend or withdraw it.

The activist investor has set conditions on his offer so that he can stop buying shares if he reaches 50.1 percent control. The company has said that could leave investors with a stake in a company he controls, a possibility that it said created a coercive and uncertain environment for shareholders.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

DC Gets 90-Day Stay to Order Striking Handgun Ban

Tuesday, 29 Jul 2014 14:15 PM

A federal judge on Tuesday sided with the District of Columbia and granted a 90-day stay on a ruling that challenged the . . .

David Duchovny Defends Russian Beer Commercial

Tuesday, 29 Jul 2014 14:03 PM

Hollywood star David Duchovny has defended his Russian beer commercial after it ignited a firestorm on Twitter amid the  . . .

Alabama Woman Dies after Being Doused in Gasoline, Set Ablaze

Tuesday, 29 Jul 2014 13:40 PM

An Alabama woman whose former boyfriend doused her in gasoline and set her on fire died early on Tuesday after two days  . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved