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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV