NEW YORK (TheStreet) -- Clorox (CLX - Get Report) investors voiced their disapproval with billionaire investor Carl Icahn's move to withdraw his plans to take control of Clorox's board, though Icahn did so citing lack of shareholder support for the nominations.
Shares of the consumer and household products maker fell 5% to $65.92 amid heavy trading Monday morning. Nearly 1.9 million shares changed hands just over 90 minutes into the trading session, compared with their average daily volume of just 1.4 million. Clorox confirmed Icahn's withdrawal of board nominations, saying it was "confident" in its strategy to benefit shareholders by focusing on consumer trends. In late August, Icahn had stepped up his proxy fight for Clorox, saying he would backstop an auction for the cleaning supplies maker, hoping to obtain $78 per share, if the board members he had nominated were elected. If the auction failed to bring in an offer at that price he promised to buy the company himself at that rate, valuing Clorox at $10.26 billion. Icahn already owned around 9.5% of Clorox, according to an August SEC filing, worth around $5 billion.
"When you try to seek control
Icahn's original proposal was widely viewed as merely a way to put Clorox in play. Entities controlled by Icahn own roughly 9.5% of Clorox's outstanding common stock, making him the company's largest shareholder. He tapped consumer products makers Procter & Gamble ( PG - Get Report), Unilever ( UN), Kimberly-Clark ( KMB - Get Report) and Colgate-Palmolive ( CL - Get Report) as possible "strategic buyers" that might offer "superior bids." "We are in a unique position as your largest shareholder in that we are wearing two hats -- one as a shareholder and another as a buyer," Icahn wrote in his July 15 letter. -- Written by Miriam Marcus Reimer in New York. >To contact the writer of this article, click here: Miriam Reimer. >To follow the writer on Twitter, go to @miriamsmarket. >To submit a news tip, send an email to: email@example.com.
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