With Irving, Texas-based Commercial Metals Company's (CMC) annual stockholders meeting only a few weeks away, CMC executives sent another letter to its shareholders Tuesday insisting that tendering their shares is not in their best interest.
Similar to a letter CMC sent to stockholders last December, Tuesday's letter reiterated that the CMC Board of Directors believes Icahn's offer of $15.00 per share is "financially inadequate and substantially undervalues CMC, is opportunistically timed, involves significant risk and uncertainty and fails to take into account the value from recent action taken by CMC's new management team."
The letter also urged stockholder to reject Carl Icahn's nominees for election to the CMC Board: "We believe his nominees are not qualified, are merely Mr. Icahn's deputies and will only try to further his attempt to acquire CMC. Ask yourself: Whose interests do you think Icahn's nominees will serve?"
The letter also addressed that Icahn's plans to combine a part of CMC with Icahn-controlled PSC Metals, Inc., which Icahn has tried to sell twice in the past since acquiring the company in 2003. "We think that CMC stockholders should ask Mr. Icahn if he is trying to simply fix what we believe is a historically troubled investment in PSC Metals by attempting an opportunistic takeover of CMC. Further, because of Mr. Icahn's ownership of PSC Metals--a competitor in the recycling business--we believe his nominees would have a serious conflict of interest that raises issues under the federal competition laws. We believe electing Mr. Icahn's nominees would pose substantial risk to your investment," the letter continued.