You will be redirected back to your article in seconds

Lionsgate appeals poison pill rescission

Minimajor responds to Canadian regulators' decision

Lionsgate has appealed the decision by Canadian regulators to rescind its poison pill defense, aimed at blocking Carl Icahn’s hostile takeover attempt.

The minimajor made the announcement Wednesday, a day after the British Columbia Securities Commission’s decision to void the Lionsgate Shareholder Rights Plan. The company said its appeal will be heard Monday and disclosed that its board has re-scheduled its shareholders meeting to vote on the pill from May 4 to May 12.

Meanwhile, Icahn praised the commission’s ruling. “Lionsgate shareholders should have the right to decide for themselves whether they wish to sell their shares in our tender offer,” he said in a statement.

The poison-pill provision had been designed to dilute the value of Icahn’s shares if he exceeds a 20% stake.

Icahn, who owns 19% of Lionsgate and has been seeking to oust the current management, has been campaigning for his $7 a share offer, which expires Friday. Icahn upped his offer from $6 a share earlier this month.

The announcement came after the stock market closed. Shares of Lionsgate jumped 25¢ in Wednesday trading to $6.87 in a signal that investors believe Icahn may sweeten his bid again — a move that analysts believe Icahn will have to make if he wants to obtain control.

Lionsgate’s latest announcement repeated the company’s accusations that Icahn’s a short-term opportunist who’s unwilling to let management’s strategy work, calling his offer “financially inadequate, opportunistic and coercive.”

Lionsgate and Icahn have been blasting each other for weeks with the investor asserting that the company’s over-spending and has “failed” shareholders. Shares have gained 24% this year but remain well below their highs in 2007.

“Lionsgate believes that there are shareholders who, without the protection of the Shareholder Rights Plan, may be coerced to tender into the offer,” Lionsgate said. “The company wants to provide shareholders an opportunity to obtain the information necessary to make an informed and non-coerced decision.”

More Film

  • Michael Ovitz: 12 Things We Learned

    12 Things We Learned From Michael Ovitz's New Book

    Lionsgate has appealed the decision by Canadian regulators to rescind its poison pill defense, aimed at blocking Carl Icahn’s hostile takeover attempt. The minimajor made the announcement Wednesday, a day after the British Columbia Securities Commission’s decision to void the Lionsgate Shareholder Rights Plan. The company said its appeal will be heard Monday and disclosed […]

  • Inside the 'Fantastic Beasts' Press Tour:

    Behind the Scenes of the 'Fantastic Beasts' Press Tour: J.K. Rowling and Crew Take NYC by Storm

    Lionsgate has appealed the decision by Canadian regulators to rescind its poison pill defense, aimed at blocking Carl Icahn’s hostile takeover attempt. The minimajor made the announcement Wednesday, a day after the British Columbia Securities Commission’s decision to void the Lionsgate Shareholder Rights Plan. The company said its appeal will be heard Monday and disclosed […]

  • Wolf of Wall Street Red Granite

    Red Granite Pays Off $60 Million Settlement in Malaysian Corruption Case (EXCLUSIVE)

    Lionsgate has appealed the decision by Canadian regulators to rescind its poison pill defense, aimed at blocking Carl Icahn’s hostile takeover attempt. The minimajor made the announcement Wednesday, a day after the British Columbia Securities Commission’s decision to void the Lionsgate Shareholder Rights Plan. The company said its appeal will be heard Monday and disclosed […]

  • Jesse Williams

    'Grey's Anatomy' Star Jesse Williams to Direct Film About Emmett Till's Mother

    Lionsgate has appealed the decision by Canadian regulators to rescind its poison pill defense, aimed at blocking Carl Icahn’s hostile takeover attempt. The minimajor made the announcement Wednesday, a day after the British Columbia Securities Commission’s decision to void the Lionsgate Shareholder Rights Plan. The company said its appeal will be heard Monday and disclosed […]

  • Carlos Diegues preps next film, ‘The

    Carlos (‘Caca’) Diegues Preps Next Film, ‘The Dame’ (EXCLUSIVE)

    Lionsgate has appealed the decision by Canadian regulators to rescind its poison pill defense, aimed at blocking Carl Icahn’s hostile takeover attempt. The minimajor made the announcement Wednesday, a day after the British Columbia Securities Commission’s decision to void the Lionsgate Shareholder Rights Plan. The company said its appeal will be heard Monday and disclosed […]

  • Mel Gibson to Direct 'Wild Bunch'

    Mel Gibson to Write and Direct 'Wild Bunch' Remake at Warner Bros.

    Lionsgate has appealed the decision by Canadian regulators to rescind its poison pill defense, aimed at blocking Carl Icahn’s hostile takeover attempt. The minimajor made the announcement Wednesday, a day after the British Columbia Securities Commission’s decision to void the Lionsgate Shareholder Rights Plan. The company said its appeal will be heard Monday and disclosed […]

  • Margot Robbie

    Margot Robbie's 'Birds of Prey' to Open in February 2020

    Lionsgate has appealed the decision by Canadian regulators to rescind its poison pill defense, aimed at blocking Carl Icahn’s hostile takeover attempt. The minimajor made the announcement Wednesday, a day after the British Columbia Securities Commission’s decision to void the Lionsgate Shareholder Rights Plan. The company said its appeal will be heard Monday and disclosed […]

More From Our Brands

Access exclusive content