LOS ANGELES (Reuters) - Investor Carl Icahn said on Tuesday Canadian authorities have invalidated Lions Gate Entertainment Corp’s poison pill designed to thwart his $7-a-share hostile bid.
Icahn in a statement said the British Columbia Securities Commission (BCSC) issued a “cease trade order” related to the poison pill adopted by Lions Gate’s board, restoring to shareholders the right to decide for themselves whether they wish to participate in his tender offer.
Lions Gate said it was disappointed and urged shareholders to vote for the plan at its shareholder meeting on May 4.
The pill, which entitles shareholders to buy more stock at a discount and block Icahn, was implemented by Lions Gate’s board without approval by shareholders as a tactical move against Icahn’s bid, which expires on April 30, according to analysts.
Lions Gate’s shares rose 6.8 percent to $7.07 in after-hours trade after closing at $6.62.
Icahn owns almost 19 percent of Lions Gate, the maker of the “Saw” and “Tyler Perry” movies.
Reporting by Sue Zeidler; Editing by Richard Chang