Clorox rejects Icahn's second bid

AP News
Posted: Jul 26, 2011 5:53 PM
Clorox rejects Icahn's second bid

The Clorox Co. has rejected billionaire investor Carl Icahn's second $10.7 billion bid for the company, dismissing the offer as inadequate.

The consumer products company dismissed Icahn's first $10.2 billion offer last week as too low. Icahn, a hedge fund manager, increased his offer by almost 5 percent a few days later.

Clorox said Tuesday that its board has unanimously dismissed the latest $80 per share offer, saying it undervalues the company and is not credible. The company also said its board felt Icahn's offer lacked detail, and it is open to considering any other offers.

Icahn, Clorox's biggest shareholder, has criticized the company's performance and suggested that it accept his bid, shop for competitive offers or take his higher bid to shareholders for a decision. Icahn bought a 9.4 percent stake in Clorox in December.

Clorox said that it remains committed to its current business strategy, saying its own plans are the best way to create value for its shareholders.

The company said earlier this month that it was adopting a "poison pill" shareholder rights measure to try to ward off Icahn. The plan will take effect if a person or group acquires a 10 percent stake in Clorox in a transaction not approved by the board. If that happens, the company will issue one stock purchase right for each share outstanding as of July 28.