Lionsgate Shareholders Re-Elect Board; Icahn Bid Done?14 Dec, 2010 By: Erik Gruenwedel
Lionsgate Dec. 14 said shareholders re-elected the minimajor’s board, including new nominee Frank Giustra, according to preliminary results from the annual shareholder meeting.
In doing so, shareholders denied activist stakeholder Carl Icahn’s slate of five nominees and dwindling mandate to assume control of the studio.
“Today’s outcome reaffirms that Lionsgate shareholders continue to have confidence in the board’s and management’s strategy to enhance value for all Lionsgate shareholders,” the studio said in a statement.
Indeed, Icahn Dec. 13 withdrew a standing $7.50 per share offer to common shareholders as part of a two-year unsolicited effort to assume majority control of the company. The offer had been predicated upon a positive outcome in separate litigation involving a former Icahn associate now supporting Lionsgate’s management.
A New York judge Dec. 9 denied Icahn’s motion for an injunction against former associate Mark Rachesky.
“We recognize that it is now virtually impossible for us to prevail in the proxy contest, due to the dilutive transaction in question,” Icahn said in a statement Dec. 13.