Securities Regulator Nixes Lionsgate Poison Pill Defense

British Columbia Securities Commission said reasons for decision to back application from Icahn will follow

TORONTO -- Another notch for Carl Icahn: the British Columbia Securities Commission has agreed to cease trade a poison pill defense adopted by Lionsgate Entertainment last July as part of an on-going battle for control of the mini-studio.

A BCSC panel said reasons for its decision to back the application from the Icahn Group will follow.

Lionsgate introduced the second shareholder rights plan on July 1 as Icahn continued his threat to wage a costly proxy fight to secure control of the Vancouver-based company.

That move was soon followed on July 9 by a 10-day truce between Lionsgate and Icahn to consider possible acquisitions.

That ceasefire was followed by resumed hostilities, including yet another hostile takeover bid from Icahn for outstanding shares in Lionsgate that he doesn't already own.

But in a chess game leading to ever-more nuanced moves, Lionsgate and Icahn last week pacted to take a last-minute run at hobbled MGM.

Icahn successfully petitioned the BCSC, which regulates securities markets in British Columbia where Lionsgate was born and is headquartered, to cease trade an original poison pill defense employed against the billionaire investor last spring.