It has been about a year since activist investor
dropped his bid for Irving, Texas-based Commercial Metals Co. (
). After a proxy contest lasting several months, and the company
urging its shareholders to refuse Icahn's $15 per share tender
offer, Commercial Metals can continue to welcome the New Year
Icahn-free, as the takeover Guru reported his third stake
reduction in the company today.
Icahn, who once had about 10 percent control of the company, now
has 6.17 percent of the company's outstanding shares. In the
third quarter of 2012, he had 6.82 percent outstanding shares.
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reported that the transaction got rid of 9.43 percent of his
stake, bringing his total shareholding to a little over 7 million
shares, from his largest total of 11.5 million shares in the
third quarter of 2011.
Icahn first acquired Commercial Metals in 2010, starting off with
2.4 million shares at the average price of $13.80, and quickly
increasing in the quarters that followed. He had the goal of
placing new members in the Commercial Metals board. But soon
after Commercial Metals confirmed and showed reasons why Icahn's
tender offer completely undervalued the company, Icahn backed
away and reported his first stake reduction in the first quarter
Commercial Metals called the bid "opportunistic, [at a] low-ball
price." The company also emphasized to its shareholders that
Icahn's board nominees were not qualified, making sure to mention
Icahn's past failed takeover attempts and how his current offer
"creates an illusion for a meaningful premium."
"The company has made a number of promises to shareholders, which
shareholders appear to believe will be beneficial to the stock,"
Icahn said in a statement. "We respect the views of the
shareholders and hopefully their decision not to tender will
prove to be the right one."
Icahn has lost at several high-profile proxy contests and
takeover attempts. The most recent ones that made headlines were
Greenbrier Companies Inc.
Commercial Metals is down 1.15 percent this morning, trading at
$15.40. It has 1 star in Business Predictability, 6 in Financial
Strength and 4 in Profitability and Growth. (See the company's
View more of Icahn's latest trades here. Also view his
undervalued stocks, top growth companies and high yield stocks.
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