Canadian regulatory authority scores one in Icahn's favor (VAR, FT)

By Nancy Tartaglione

On Tuesday, the British Columbia Securities Commission scored one for Carl Icahn in his continuing battle for Lionsgate. The authority voided the studio's poison pill provision which was aimed at preventing the activist investor's proposed hostile takeover. The minimajor is said to be launching legal action against the stock market regulator today in an effort to overturn the decision, according to a report from The Financial Times.

A person familiar with the situation told the FT that Lionsgate would appeal the ban imposed by the Commission.

The poison-pill defense was designed to allow shareholders to buy more shares at a discount if Icahn increased his stake. Shareholders were due to vote on the plan on May 4.

Icahn has contended that the pill was unfair and prevented shareholders from deciding for themselves whether to accept his $7 a share offer, which expires Friday.

Shares of Lionsgate jumped 45 cents in afterhours trading to $7.07 in a sign that investors believe Icahn may increase his bid again.

According to Variety, Lionsgate said it still plans to hold the May 4 vote in Toronto. The studio has characterized Icahn's offer as "financially inadequate, opportunistic and coercive" and not in the best interests of the company.