Carl Icahn offers to buy struggling Commercial Metals for $1.73 billion
29 Nov 2011
Billionaire activist-investor Carl Icahn yesterday offered to buy Commercial Metals Co, a metals recycler, for $1.73 billion, and merge the company with his own metals recycling assets.
The $15 per share offer has been made by Icahn Enterprises LP, representing a 31 per cent premium to Commercial Metals' Friday closing of $11.45.
The proposed acquisition comes after Icahn's recent failure to close deals including his $13-billion bid for household products maker Clorox Co for and trying to install his nominees on the board of drug maker Forest Laboratories.
He also sold his entire 17-per cent stake in Lions Gate Entertainment after waging a two-year public campaign against the studio.
Icahn, Commercial Metals ' largest shareholder with a 9.98-per cent stake, had last month nominated three directors to the company's board, which prompted the company to adopt a stockholder rights plan with a 10-percent threshold, making it difficult for Icahn to acquire a bigger stake.
Irving, Texas-based Commercial Metals, manufactures, recycles and markets steel and metal products, among other materials. It has 33 scrap metal processing plants and more than $1.4 billion debt.
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