This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

3 Deals to Watch: Icahn Clears Out of Clorox

NEW YORK ( TheStreet) -- Buyout veteran Carl Icahn withdrew his nomination of a slate of directors, including himself, for Clorox's (CLX - Get Report) board.

The revelation made in a 13D filing with the Securities and Exchanges Commission puts his hostile $78 a share bid for the cleaning products giant in question. According to a filing at the end of August, Icahn owned roughly 9.5% of the company and was the company's largest single shareholder, holding close to $5 billion worth of stock.

Shares of Clorox fell nearly 6% to $65.09 in morning trading as investors weighed the impact on the removal of the slate of directors on a hostile takeover done at premium to market prices.

In July, Icahn first bid on the Oakland, Ca. -based company for $76.50 at a 12% premium to the market price at the time. In a letter to Clorox Chief Executive Donald R. Knauss that came with his bid, Icahn indicated that if his purchase were to go through, he would expect an investment gain with a subsequent sale. Icahn wrote, "potential 'Strategic Buyers' for the entire company in our opinion include Procter and Gamble (PG - Get Report), Unilever, Colgate Pamolive (CL - Get Report), Reckitt Benckiser, Kimberly Clark (KMB - Get Report), and Henkel AG." His letter further explained that synergies with prospective buyers could warrant "even an acquisition of Clorox for $100 per share."

Clorox quickly rejected the bid saying, "Mr. Icahn's unsolicited proposal is neither credible nor adequate." Included in Icahn's initial bid was a letter from Jefferies (JEF) that showed it granted him $7.8 billion in debt financing to pay for the company he valued at roughly $12.6 billion when including its debt.

Icahn followed by raising his bid to $80 a share just days later, only to be rejected again. Not to be stopped, in August Icahn elected himself and a slate of directors in an attempt to oust Clorox's board. With Icahn loyal directors also came a drop in the bid price to $78 a share.

Friday's filing was accompanied by the admission that "a considerable base of shareholders" would not support the nominations.

In August, a defeated Icahn sold his holdings of Lions Gate Entertainment (LGF - Get Report) for $7 dollars a share, recording little if any gain.

1 of 4

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
JEF $0.00 0.00%
AOL $39.40 1.30%
CL $68.73 -0.02%
CLX $110.00 0.33%
KMB $106.38 0.06%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs