BC court rejects Icahn suit in Lions Gate swap

AP News
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Posted: Nov 01, 2010 3:06 PM
BC court rejects Icahn suit in Lions Gate swap

British Columbia's Supreme Court has rejected a petition by billionaire Carl Icahn to nullify a series of transactions that diluted his stake in movie studio Lions Gate Entertainment Corp.

Monday's decision by Justice John Savage found that Lions Gate's board was not seeking to entrench its control of the company.

Savage said the Icahn Group was simply "bitter" at its thwarted attempt to take over the studio, which was founded in Vancouver, but is run out of Santa Monica, Calif.

In July, Icahn sued over a transaction in which $100 million in convertible bonds owned by Kornitzer Capital Management Inc. was sold to board member Mark Rachesky. Rachesky converted the bonds into stock, boosting his stake to 29 percent, while cutting Icahn's to about 33 percent.