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Mr Icahn offers to buy CMC
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Tuesday, 29 Nov 2011

Investor Mr Carl Icahn has offered to buy out Commercial Metals Co in a deal valuing the metals recycler at USD1.73 billion

Icahn Enterprises LP's USD 15 per share bid represents a 31% premium to Commercial Metals' Friday close. The stock traded at a discount to the offer and closed at USD 14.17 on the New York Stock Exchange on Monday.

Mr Icahn insisted his offer was formal as he said in a statement “The offer we delivered to the Board earlier today is, in all respects and without any doubt, a formal all cash offer to acquire the company.”

Mr Icahn said he didn't have any confidence that board will ever hold management accountable for poor performance. He said “We are prepared to enter immediate negotiations and would like to see a tender offer launched as soon as possible.”

Icahn, Commercial Metals' largest shareholder with an about 10% stake, last month nominated three directors to the company's board. In July, the company adopted a stockholder rights plan, making it harder for Icahn to take a bigger stake in it. Icahn plans to merge Commercial Metals with PSC Metals, which he acquired from Philip Services Corp for USD 335 million in 2007.

The offer is Icahn's latest this year, which has seen him bow out of several proxy battles and takeover attempts.

(Sourced from Reuters)

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