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Commercial Metals Company: Carl Icahn bid is "opportunistic"

A US company has rejected a bid that it believes to undervalue the business.

05 December 2011

Carl Icahn may have been more successful hiring merger and acquisition consultants when he made a bid for Commercial Metals Company (CMC), as his proposal to buy the firm has been rejected.

The businessman's unsolicited offer was "opportunistic", CMC stated, saying everybody on the board of directors was keen to rebuff the deal.

Lead director of the metal provider Anthony Massaro argued: "Mr Icahn is making an aggressive push to acquire the company at this time in an attempt to achieve a bargain basement price."

He explained the firm is "at a low point in the economic and industry cycle", but the offer of $15 (£9.62) per share undervalues the enterprise and its prospects.

The decision to reject the bid was made after discussions with merger and acquisition advisors from the company's lawyers Sidley Austin and financial consultants Goldman Sachs & Co.

At the close of trade on Friday (December 2nd), the firm's shares were worth $13.99, after rising by 65 per cent.

Posted by David Gleck

Source: Commercial Metals Company statement, December 5th

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