Financier Carl Icahn's firm said that if its bid for Commercial Metals Co gets enough support, it will extend the offer while management bargains for a higher sales price.

Icahn Enterprises Holdings LP is offering USD 15 per share, which would value the scrap metal company at about USD 1.7 billion. On January 3rd 2012, the company board urged shareholders to reject what it called an opportunistic, low ball price from Icahn.

In an open letter on January 4th 2012 to Commercial Metals directors and shareholders, Icahn Enterprises suggested that the company isn't worth USD 15 per share with the current board and management. It said the company's performance has been egregious.

Icahn said if more than 40% of shares are tendered giving Icahn at least 50% control, the investment firm will extend the tender offer. This, Icahn said, would let the company conduct a fair sale process in which USD 15 per share would become the floor price, and avoid a proxy fight. During the extension, shareholders could withdraw their shares from the tender offer.

Icahn, who already owns about 10% of Commercial Metals, took his bid directly to shareholders in early December 2011, after the company rejected his overtures.

The Irving, Texas based company makes and recycles steel and metal products. It has lost money the last two years. Icahn plans to combine its core North American operations with his current metals recycling businesses and sell off other parts of the company.

Icahn said that management is asking investors for yet another chance to risk shareholder money on their global expansion plans, now is not the time to give them one more chance."

(Sourced from Associated Press)