NEW YORK (AP) â¿¿ Carl Icahn ended a hostile takeover attempt of Commercial Metals after failing to win over shareholders, sending shares lower Wednesday.
The $15-per-share offer from Icahn Enterprises Holdings LP expired at midnight Tuesday, two weeks after Icahn said he would walk away if he did not get shareholder support. On Wednesday, only 23 percent of shares were tendered, far short of his 40.1 percent goal.
"We are pleased that Mr. Icahn has ended the proxy contest following the expiration of the tender offer," Commercial Metals said in a statement. "The board has great confidence in the company's future and believes that the continued execution of its strategic plan, which is already yielding positive results, will deliver enhanced value to our stockholders."
Icahn first launched his fight for Commercial Metals last year. His investment company had amassed a nearly 10 percent stake by July. Days after his stake was revealed, the company adopted a poison pill to defend itself against a hostile bid.Icahn and his affiliates purchased 11.5 million shares between June 16 and the end of July last year, according to documents filed with the Securities and Exchange Commission. At that time, shares ranged between $13.51 and $14.51. The stock lost significant ground after that, but has since recovered. It closed Tuesday at $14.76. The billionaire investor has recently ended his bids for other major companies after failing to garner enough support, including Clorox Co. and Lions Gate Entertainment Corp. Shares of Commercial Metals Co., based in Irving, Texas, fell 4.5 percent, or 66 cents, to $14.10 in morning trading.