Wednesday, December 7, 2011

Icahn goes to Commercial Metals holders with bid

(AP) ? Billionaire investor Carl Icahn is taking his buyout offer that values Commercial Metals Co. at $1.73 billion directly to the company's stockholders, a day after the scrap-metal processor rejected the bid.

Icahn Enterprises Holdings LP said Tuesday that it plans to start a tender offer for all of Commercial Metals' outstanding stock at $15 per share, which was a 7 percent premium to the Irving, Texas, company's closing stock price of $14.09 on Monday.

Commercial Metals says Icahn's offer undervalues the company and its future prospects.

Icahn, known for buying and shaking up struggling companies with mixed success, already owns almost 10 percent of Commercial Metals.

One obstacle the tender faces is that Commercial Metals' board would need to lift a "poison pill" that's in place. Poison pills are typically implemented to try to prevent hostile takeovers.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2011-12-06-Commercial%20Metals-Icahn/id-8687ec49f9b84f8b8c7fbbc885c2c289

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