This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Clorox Doubts Credibility of Icahn's Bid

NEW YORK ( TheStreet) -- Clorox (CLX - Get Report) isn't going to let Carl Icahn usher it to the auction block quite so easily.

The company issued a statement after Monday's closing bell, saying its board believes moving forward with its current strategic plan is the best way to generate value for shareholders, and that Icahn's offer of $76.50 per share "substantially undervalues the company."

Clorox also took a bit of a swipe at Icahn and his offer, which has been viewed by some as a rather transparent attempt to spark a bidding war for the company as he is its largest shareholder. Icahn's investment vehicle owns roughly 9.4% of Clorox's outstanding common stock.

"Our board has unanimously determined Mr. Icahn's unsolicited proposal is neither credible nor adequate," said Gary Michael, the lead director of Clorox's board, in a statement.

Don Knauss, the company's CEO and chairman, discussed the longer-term performance of Clorox's shares in the release, as well as its dividend history, as it has doubled the payout in the past five years.

"At Clorox, we have a proven track record of delivering superior financial returns to our stockholders," said Knauss. "Importantly, over the last three years since the start of the global recession, Clorox's total stockholder return was 43 percent versus 10 percent for the S&P 500 and 34 percent for our comprehensive consumer packaged goods peer group."

Clorox also said it's adopted a shareholder rights plan with a 10% trigger as a way of "to assure that all of Clorox's stockholders receive fair and equal treatment in the event of any proposed takeover of the company and to guard against tactics to gain control of Clorox without paying all stockholders a premium for that control."

The company said its board think it is "appropriate and prudent" to adopt the plan at this time.

Clorox shares closed Monday at $73.04, down 2% on more than five times the stock's typical volume. Year to date, the shares are up 11%.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.

>To submit a news tip, send an email to:
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CLX $125.20 0.34%
AAPL $93.57 -1.30%
FB $116.84 0.09%
GOOG $694.89 0.56%
TSLA $237.78 -4.00%


Chart of I:DJI
DOW 17,807.54 +33.90 0.19%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs