This Day On The Street
Continue to site
ADVERTISEMENT
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

Icahn Ends Takeover Attempt Of Commercial Metals

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.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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
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!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs