Carl Icahn’s $7 bid for Lions Gate can now go directly to a shareholder vote after Canadian trade officials removed a "poison pill" clause, which had been adopted by the company’s board to block a potential hostile takeover by the corporate raider.
The British Columbia Securities issued a "cease trade order" Tuesday with respect to the provision, "restoring to shareholders the right to decide for themselves — without interference from the Board," according to a statement from Icahn.
Lions Gate issued a statement saying it was disappointed by the commission’s decision. "The Board and its advisors are reviewing the decision of the BCSC and considering all of Lionsgate’s options, including applying for an appeal," the company said.
The Icahn group’s tender offer to purchase up to all of Lions Gate’s outstanding common shares at $7 expires on Friday night.