Lionsgate shareholders reject Icahn's offer

Will vote on Wednesday on poison pill defense

TORONTO -- Lionsgate on Monday said shareholders have rejected Carl Icahn's $7-per-share takeover offer after it was extended to May 21.

Vancouver-based Lionsgate said the Icahn Group's fell short of the minimum number of shares, with only 6.5% of outstanding shares so far tendered.

That has forced Icahn to extend his tender offer to May 21 without sweetening his offer price or otherwise changing its terms.

Icahn also urged shareholders to vote down Lionsgate's poison pill defense when it comes up for a vote in Toronto on May 12.

"While it is our firm belief that this vote has now been rendered totally meaningless, we nevertheless urge all shareholders to send a message to Lions Gate by voting against the poison pill," Icahn said in a statement.

Lionsgate in its own statement applauded investors for so far denying Icahn sought-after control of the mini-studio.

"Lionsgate's shareholders have demonstrated that they believe the Icahn Group's offer is inadequate and does not reflect the value of their investment," the mini-studio said.