Canadian regulators have tossed out Lionsgate’s poison pill defense against Carl Icahn, which would have prevented the billionaire from accumulating more than 38% of the stock.
The British Columbia Securities Commission issued its decision late Monday but did not elaborate.
Lionsgate had created the poison pill in early July as Icahn continued a proxy fight for control of the minimajor. However, Icahn also teamed with Lionsgate last week on a merger proposal with MGM.
Icahn, who owns 33% of Lionsgate, was also able to persuade the British Columbia Securities Commission in April to overturn a previous poison pill that would have capped Icahn’s holdings at 20%. The commission is located in Vancouver, where Lionsgate is headquartered.
Icahn’s current tender offer of $7.50 a share expires on Friday but the offer’s not expected to generate much interest among shareholders. Shares of Lionsgate were off 7 cents to $7.48 in trading Tuesday on the New York Stock Exchange.
Icahn and Lionsgate also went to court last week at the British Columbia Supreme Court over Lionsgate’s debt-to-equity transaction that diluted Icahn’s stake from 38% to 33.5% while boosting Mark Rachesky’s from 19% to 29%. Icahn’s attempting to void that transaction.