Lions Gate loses appeal to restore poison pill in British Columbia court
By APFriday, May 7, 2010
Lions Gate loses appeal on Icahn poison pill
LOS ANGELES — Lions Gate Entertainment has lost an appeal to restore a shareholder rights plan that would have prevented a takeover bid from Carl Icahn.
The British Columbia Court of Appeal dismissed the appeal Friday.
A Lions Gate spokesman confirmed the ruling but did not immediately have a comment.
The decision will allow shareholders to sell their shares to Icahn, who has offered $7 apiece. Last week, Icahn extended his offer until May 10.
Icahn controls nearly 19 percent of the shares already.
Lions Gate has called the offer too low and urged shareholders not to sell.
Shares rose 12 cents, or 1.8 percent, to $6.68 in after-hours trading after closing down 16 cents at $6.56 in the regular session Friday.
