Billionaire investor Carl Icahn says he wants to buy Commercial Metals Co. for about $1.73 billion and says he has no confidence in its board and management.
The offer of $15 per share represents a 31 percent premium over the scrap metal processor's closing stock price on Friday. The Irving, Texas, company's shares jumped 23 percent to $14 in morning trading.
Icahn already owns about 10 percent of the company.
Icahn, who owns PSC Metals Inc., says in a letter to Commercial Metals' board that he wants to combine the company with his existing metals recycling businesses and sell off the rest of its assets. A new management team would be appointed immediately.
Icahn plans to nominate three people to Commercial Metals' board at its 2012 annual shareholder meeting.