If Icahn were to succeed in his tender, he would sell Commercial Metals' non-core international assets and combine the remaining U.S. business with his existing majority-owned PSC Metals business, expanding its $725 million in 2010 sales by a factor of nearly tenfold with Commercial Metals' revenue.
That's where things get complicated. Like with a $10.3 billion play for Clorox (CLX) in 2011, Icahn may simply be trying to drum up interest from a strategic buyer with his bid. If that were the case, his tender may not be looked upon so highly. Icahn was unable to win Clorox shareholder support for a slate of his directors to the company's board, which would have moved his bid forward. In September, Icahn withdrew his Clorox buyout offer and began selling shares.
Icahn will also face shareholders at the end of January in his nomination of six directors to truck-maker Oshkosh's board - which he took a near 10% share stake in June - and subsequently recommended in a December CNBC interview that the Wisconsin-based company sell itself to larger truck and military vehicles maker Navistar. That deal proposal already is complicated by a reverse in Icahn's course.
When taking a stake in Navistar starting in October, which has now grown to nearly 10%, Icahn quickly pushed for a directors to the company's board, potentially paving the way for a sale. He withdrew his nominations when Navistar agreed to declassify its board, which would allow for an unsolicited bid - not a big help to a potential merger with smaller Oshkosh.Oshkosh has consistently resisted Icahn's directors, and hasn't expressed interest in selling itself. Meanwhile, Navistar CEO Daniel Ustain was more amenable to synergies with Oshkosh, such as its military vehicles business and pieces of its commercial businesses like its construction of cement mixers. "