Icahn Enterprises Holdings LP, run by billionaire investor Carl Icahn, issued another open letter to the media Tuesday, indicating its new plan regarding its recent tender offer to the shareholders of Irving, Texas-based Commercial Metals Company (CMC) to acquire the steelmaker.
In the letter, Icahn said: "Having met with the management of [CMC], and reviewed their plans for the future of Commercial Metals we have concluded that we do not wish to remain a minority holder in a Company run by the current Board and will therefore drop our proxy fight if 40.1 percent of the shares of the Company are not tendered in our Tender Offer." If, however, at least 40.1 percent of CMC shares are tendered at Icahn's offer price of $15 per share, then Icahn Enterprises will proceed with acquiring CMC in full.
Icahn said that he believes it will be impossible to work with CMC's Board of Directors "to improve the company from the position of a 10 percent stockholder, even if we were to be successful in electing our three nominees." Icahn also said he disagrees with CMC's new strategic plan and "As far as I am concerned this Board is now trying to save the Company from the value destruction flowing from its last ‘strategic plan,' and, in my humble opinion, wishful thinking about being bailed out by improving market conditions is not my idea of a business plan," he said.
Icahn Enterprises' tender offer will expire at midnight on January 10, 2012.