Tuesday, July 7, 2020

ICAHN SAYS RESULT OF LAWSUIT ALL-IMPORTANT IN LIONSGATE TAKEOVER

December 8, 2010 by · Leave a Comment 

Carl Icahn has conceded that in order for him to win a proxy battle next week to put five nominees of the board of Lions Gate Entertainment, he must win a lawsuit in New York in which he seeks to undo a debt-for-equity transaction by the company that increased the stake of Mark Rachesky while diluting his own. “That case is critical,” Icahn told today’s (Wednesday) Los Angeles Times. “If you do the numbers, it’s almost impossible for us to win the proxy vote unless we win this court case.” The Times pointed out that Icahn and his supporters control just over 40 percent of the company’s stock, not enough for them to prevail when the Lions Gate board meets next Tuesday. He has asked the New York State Supreme Court to issue an injunction that would bar Rachesky from voting his new shares. Icahn also has a standing offer to buy Lions Gate shares at $7.50 per share. That offer, too, is contingent on the New York court ruling favorably on his behalf.