Tags: carl | Icahn | appeal | Ruling | Lions | Gate | Stake

Icahn to Appeal Ruling on Lions Gate Stake

Wednesday, 03 Nov 2010 09:43 AM

Carl Icahn said he will appeal a court ruling upholding a swap transaction by Lions Gate Entertainment that he claims hindered his hostile takeover bid for the studio.

Icahn also disputed claims in a separate lawsuit filed by the studio.
Icahn's petition to undo Lions Gate's equity-for-debt swap was dismissed Monday by a British Columbia Supreme Court.

The swap essentially diluted his stake in Lions Gate, home to the popular "Mad Men" series, to 33.5 percent from 38 percent, where it had been before the deal.

Icahn is attempting to buy Lions Gate for $7.50 a share.

On Tuesday, Icahn also disputed claims in a separate suit by Lions Gate alleging the billionaire had misled its shareholders and interfered with its earlier efforts to merge with Metro-Goldwyn-Mayer and other studios for his own profit.

Lions Gate alleged Icahn was "secretly plotting to merge the two studios — but only after he had acquired a sufficiently large position in both companies at depressed prices to ensure that he maximized his own profits."

Icahn, in a filing on Tuesday in Manhattan federal court, said he publicly disclosed his interest in MGM, and that Lions Gate's allegations are false and flatly contradicted by actual public filings.

© 2015 Thomson/Reuters. All rights reserved.

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