Activist investor Carl Icahn’s bid for Lions Gate Entertainment Corp. (NYSE:LGF) has ended – for now.
In a release issued Monday, the billionaire said he withdrew the offer because the New York State Supreme Court did not grant a preliminary injunction that would have prevented shares issued in July from being voted on at the Vancouver company’s annual general meeting.
At issue was the fact the shares were issued to Lions Gate director Mark Rachesky, a move Icahn believes was engineered to dilute his stake and thwart his attempt to buy the company.
Icahn offered $7.50 per share for Lions Gate.
At press time, Lions Gate’s shares were down $0.17 to $7.27.
“We are disappointed that our motion for a preliminary injunction barring the voting of the shares issued to director Mark Rachesky was not granted, but we are pleased that the judge agreed to hold a full trial on the matter within the next several months,” Icahn said.
He went on to say another shareholders meeting will be held in September 2011, and, in the meantime, he will “take all actions necessary” to protect his investment.
Icahn’s decision to stand down for the time being comes after months of corporate battling to gain control of the Hollywood studio, which produces the Mad Men TV series.
Last week, he launched a website that published multiple reports justifying his bid for the company. (See “Icahn launches website to support Lions Gate bid” – BIV Business Today, December 6.)