Carl Icahn, the billionaire investor that last week sent a letter to the Board of Directors of Irving, Texas-based Commercial Metals Company (CMC) indicating Icahn Enterprises' interest in acquiring the steelmaker, announced Tuesday, that after the CMC Board denied his offer, Icahn Enterprises plans to launch a tender offer for all of the outstanding shares of CMC directly to shareholders.
"After attempting to work with the board, we are launching this tender offer so that shareholders can decide for themselves what they wish to do with their company," said Icahn in a press release. Icahn owns a 10 percent stake in CMC, a majority share, and also said the tender offer will require 40.1 percent of the company's shares. Icahn Enterprises is intent on acquiring the company for $15 per share.
Icahn also said that "If a majority of shareholders accept our tender offer (including shares already owned by the offer or and its affiliates), we do not believe that even this Board will stand in the way of allowing a majority of its shareholders from accepting this premium if they wish to do so. However, if the Board, even after hearing from a majority of shareholders, fails to lift the poison pill and waive Section 203, we will leave the tender offer open and seek a court order compelling the Board to redeem the poison pill and waive Section 203 so that the shareholders can receive their money. We hope that even this Board will not decide to waste time and money fighting the will of shareholders in a courtroom battle. But, if they choose to do so, please know that we will fight this case all the way to the Delaware Supreme Court."
CMC denied Icahn's initial offer on Monday, insisting that the offer is "opportunistic" and "substantially undervalues the Company and its future prospects."