Icahn's Bid Rejected by Commercial Metals On Undervaluing

Icahn's Bid Rejected by Commercial Metals On Undervaluing


Billionaire investor Carl Icahn is bidding again with the same result, another rejection. Commercial Metals (NYSE:CMC) has dismissed his $1.73 billion takeover offer saying the proposal undervalues the company. The scrap-metal processor denied Icahn on Friday after he said the company's board of directors had until Monday at 9 am to set up a metting to discuss his $15 per share offer, which was a 7 cent per share premium to Commercial Metals' closing stock price on Friday. Anthony Massaro, the company's lead director said in a statement, "It's important that our stockholders understand that Mr. Icahn is making an aggressive push to acquire the company at this time in an attempt to achieve a bargain basement price for Commercial Metals." The company added that the offer "is opportunistic and not in the best interest of Commercial Metals' stockholders." Commercial Metals (NYSE:CMC) has potential upside of 10.3% based on a current price of $13.99 and an average consensus analyst price target of $15.43.