Proxy support for Lionsgate against Icahn
Glass Lewis & Co recommends poison pill defenseTORONTO -- Locked in a battle with activist shareholder Carl Icahn, Lionsgate on Friday said a proxy advisory firm, Glass Lewis & Co., is recommending that investors vote in favor of the company's proposed poison pill defense.
"...We believe that the Rights Plan may serve to protect shareholder interests in the event that a takeover bid does not reflect the full value of the Company's shares or is coercive," New York-based Glass Lewis & Co. said in an April 8 report.
Institutional investors participating in shareholder votes weigh recommendations from proxy advisory firms, and Lionsgate shareholders are set to gather in Toronto on May 4 to vote on a poison pill defense to fend off an unsolicited $6.00 per-share takeover bid from Icahn.
Lionsgate's anti-takeover shareholder rights plan will be triggered if an investor with more than a 20% stake attempts buy up more shares, and will make it more expensive for them to do so. (HR, March 19).
Icahn currently has a 19% stake, and proposes to take his holding to 30%.