Lions Gate Entertainment Corp.’s deal to increase the number of shares held by board member Mark Rachesky, a move challenged by hostile suitor Carl Icahn, was upheld by a Canadian court.

Icahn’s petition to undo the deal was dismissed, the British Columbia Supreme Court said in a ruling Monday that was provided by Lions Gate’s attorneys. Icahn, who is attempting to buy the independent film and TV studio for $7.50 a share, argued management conspired with large shareholders to thwart his bid.

Icahn was seeking to reverse an equity-for-debt swap that hindered his hostile bid for the studio by putting more shares in the hands of Rachesky, who has backed management in the takeover fight.

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