NEW YORK ( TheStreet) -- Carl Icahn's Icahn Enterprises (IEP) has withdrawn a$1.73 billion hostile bid for Commercial Metals (CMC) after less than 40% of the scrap metals giant's shareholders tendered their shares.
The failed tender follows a similar move made in 2011, where Icahn failed in a proxy campaign to buy Clorox (CLX) after being unable to garner shareholder support.
On Monday, TheStreet highlighted that as Icahn chases $1 billion-plus sized takeover and merger attempts including truck making tie-up between large holdings Navistar (NAV) and Oshkosh (OSK), his 2012 fortunes may change starting in January. The famed activist was able to return 37.4% in 2011.
The proxy campaign failure comes after only 23% of Commercial Metals shareholders tendered their holdings to Icahn or $15 a share ahead of a Jan. 10 deadline. "We did not receive 40.1% of the shares, and therefore, as previously disclosed, we will discontinue our proxy fight," said Icahn in a Wednesday statement.He launched the takeover campaign in late November. While Icahn contended that his bid would benefit shareholders suffering from a poor international expansion and an unpromising consolidation plan, Commercial Metals told shareholders that the bid was "opportunistic" and "undervalued," coming as key construction markets bottom. In October, Commercial Metals announced a winding down and sale plan for a large steel mill in Croatia as it consolidates some complicated and unprofitable international operations. About management's new strategy and its confidence that a recovery was beginning for Commercial Metals' construction related earnings, Icahn wrote in a Jan. 4 letter, "This is not the Boy Scouts," meaning that the road for second chances has ended. On news of the withdrawn proxy campaign, Commercial Metals were falling over 5% to $14 a share in pre-market trading. The company's shares fell nearly 20% in 2011.
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