Clorox again rejects Icahn’s takeover offer

Clorox Co has once again rejected activist-investor Carl Icahn's unsolicited bid, saying that his revised $13 billion offer "substantially undervalues the company and is not credible."

The board of the Oakland, California-based household products maker unanimously decided that Icahn's latest offer of $80 per share ''is inadequate and unlikely to be completed.''

Last week, Icahn raised his rebuffed $76.50 per share bid to $80 a share, valuing Clorox at about $10.2 billion or $13 billion including debt of $2.8 billion.

Clorox had questioned Icahn's plans of raising $7.8-billion debt, despite a letter from lead financier Jefferies & Co expressing confidence in being able to raise finance for the deal.

To set at rest doubts raised by the Clorox board on his ability to raise the funding, Icahn had raised the $100-million break up fee to Clorox if he failed to close the deal, to $5.2 billion, that included his own 9.4-per cent stake in the company, into an escrow account.

Icahn, who has amassed a personal fortune of $12.5 billion mainly by taking controlling positions in companies, had acquired a 9.4-per cent stake in Clorox from October 2010 to December 2010 at an average price of $63.27 a share.