One of the leading entertainment-related companies, Lions Gate Entertainment Corp said that it is going to adopt a new shareholder rights plan. This, said that company, has been done so that it is able to deter the plans of billionaire, Carl Icahn's hostile takeover plans.

Carl has been trying hard to buy the independent Hollywood studio for quite some time now. Carl has been criticizing the studio for not being able to control its 'cost' and the poor management for not being able to maintain its level of profit.

Carl had said on Thursday that since he and his affiliates hold 40 million shares in the company, it is the single largest shareholder of the company and that he is going to takeover the company to be able to correct it.

In reply to this, the studio has adopted the shareholder rights way, which is the most common method of diverting such takeovers.

As per the new guidelines, to every outstanding common share of Lions Gate, only one share purchase right will be issued. Also, the rights will be exercisable when a party acquires 38 per cent of total outstanding shares.