Icahn launches offer for Commercial Metals

AP News
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Posted: Nov 28, 2011 10:00 AM
Icahn launches offer for Commercial Metals

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.