Icahn makes play to acquire CMC - UPDATE
Nov 28, 2011 | 04:37 PM
| Sean Davidson
Tags
Carl Icahn,
Commercial Metals,
CMC,
Timothy Hayes,
Davenport & Co.,
PSC Metals,
steel,
scrap
Sean Davidson
NEW YORK — Four months after increasing his stake in Commercial Metals Co. (CMC), investor Carl Icahn made a formal move to acquire the entire company Monday.
Icahn has offered $15 per share for CMC, giving the company an enterprise value of some $2.8 billion, according to analyst Brian Yu at Citi Investment Research & Analysis. The share price represents a 31-percent premium over the stock’s closing price of $11.45 each on Nov. 25. The company’s shares closed at $14.17 apiece Monday on the New York Stock Exchange.
If successful, Icahn intends to merge his wholly owned PSC Metals Inc. with the steelmaker and scrap processor, selling off the latter’s noncore assets. Those could include all of CMC’s international ventures.
The proposed buyout price was without any financing or due-diligence conditions, Icahn wrote in an open letter addressed to CMC’s board. Icahn said he was prepared to structure the deal with an immediate front-end tender offer.....
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