BC Supreme Court dismisses Icahn's Lions Gate suit

LOS ANGELES Mon Nov 1, 2010 4:10pm EDT

LOS ANGELES Nov 1 (Reuters) - An attempt by Carl Icahn to undo an equity-for-debt swap by Lions Gate Entertainment Corp (LGF.N) he said had hindered his takeover attempt of the studio has been rejected by a Canadian provincial court.

Icahn's petition to undo the deal was dismissed, the British Columbia Supreme Court said in its ruling on Monday.

The ruling essentially keeps Icahn's stake in Lions Gate at about 33.5 percent instead of 38 percent, where it had been before the transaction, which boosted the stake of the company's second-largest shareholder, Mark Rachesky.

Icahn is attempting to buy Lions Gate, home to the popular "Mad Men" television series and "Saw" movies, at $7.50 a share.

Icahn and his attorney were unavailable for comment. Lions Gate declined comment.

Icahn has also been advocating a merger between Lions Gate and Metro-Goldwyn-Mayer. On Friday, MGM creditors approved a bankruptcy plan that involved putting the chief executives of Spyglass Entertainment at the helm.

But in a concession to Icahn, the creditors agreed to grant Icahn the right to nominate at least one person to a seat on the MGM board. (Reporting by Sue Zeidler; Editing by Gary Hill)

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