Lions Gate adopts ‘poison pill’ shareholder rights plan to thwart Icahn takeover

Lions Gate adopts ‘poison pill’ to thwart Icahn

NEW YORK — Boutique film studio Lions Gate Entertainment Corp. has adopted a shareholder rights plan, also known as a “poison pill,” to prevent hostile takeover attempts such as the one billionaire investor Carl Icahn is conducting.

The plan, announced late Thursday, would let shareholders buy extra shares at a deep discount. If exercised, the plan would dilute the stake of any potential acquirer.

Lions Gate, based in Vancouver but operated out of Santa Monica, Calif., has been battling Icahn for a year.

On Thursday, Icahn said he had gained 33.9 percent of Lions Gate shares through a tender offer. That leaves him short of a controlling interest, but he can block decisions that require a two-thirds shareholder vote.