Icahn Admits Defeat -- For Now
Carl Icahn has thrown in the towel in his long fight to take control of Lions Gate Entertainment. He acknowledged on Monday that his unsuccessful effort to persuade a New York court to issue an injunction that would have the effect of blocking the company's equity-for-debt swap with Mark Rachesky, Lions Gate's second-largest shareholder behind Icahn, and his inability to coax a sufficient number of shareholders to sell their stock to him to give him majority ownership had left him unable to prevail at a proxy vote during today's (Tuesday) board meeting. Icahn said that he will not purchase any of the shares tendered in his latest offer, which was conditioned on the successful outcome of his legal battle. Still, Icahn indicated that he is preparing for a new battle with the company next year, when the New York court holds a full trial in the case. If he prevails, he said, he plans to resubmit his nominations for board membership at the next company meeting in September. In early trading today, Lions Gate shares were down nearly 3 percent to $6.90. They have fallen 8 percent since last week.