Posted By: John Steele

Wed Nov 1, 9:15 AM ET

TORONTO (Reuters) - Canadian autoparts magnate Frank
Stronach can use his real estate company to fund his racetrack
and gambling business after a judge ruled against a hedge
fund's bid for an overhaul of the companies, according to a
newspaper report on Wednesday.
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The Globe and Mail said an Ontario Superior Court judge
tossed out a lawsuit by Greenlight Capital Inc. against
Stronach as well as management and a special committee of
directors of MI Developments, the property arm of autoparts
giant Magna International.

Greenlight, which held a 9.9 percent stake in MI
Development's class A shares, issued demands for change at the
real estate firm nearly two years ago.

The New York-based hedge fund called on MI Developments to
sell or spin off its stake in racetrack operator Magna
Entertainment and convert itself into an investment trust.

Stronach, who controls all the Magna companies he founded
through a dual-class voting structure, rejected the proposal
and easily fended it off in a shareholder vote last year.

In its lawsuit, Greenlight also wanted to convert
Stronach's multiple-vote shares into single shares and force
him to compensate MI Developments for expenses incurred during
a failed bid to take Magna Entertainment private.

MI Developments minority investors have feared that the
money-losing racetrack operations, which include the famed
Santa Anita and Pimlico tracks, would be a drain on the real
estate firm.

The newspaper on Wednesday said the judge may have left the
door open for an appeal by Greenlight as he acknowledged that
he was unable to examine thoroughly "the mountains of material"
filed in the case and only focused on evidence directly
discussed in court and on what he saw as particularly
significant evidence.

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