Commercial Metals Company (NYSE:CMC) said today its board of directors has unanimously decided to reject an offer from Carl Icahn and his firm, Icahn Enterprises (NASDAQ:IEP), to acquire the company.
Commercial Metals' board said the $15 per share offer substantially undervalues the company and its future prospects, is opportunistic and is not in the best interests of stockholders.
CMC said Icahn has failed to take into account the substantial benefits of the company's strategic plan, under which is taking steps to improve financial and operational performance.
When he made the offer, Icahn said his firm would combine Commercial Metals with IEP's own metals recycling assets. The firm would sell Commercial Metals' non-core assets and appoint a new management team to run its steel business.
Several companies, including Clorox (NYSE:CLX) and Lions Gate (NYSE:LGF) have fended off takeover efforts by Icahn in recent months.
Commercial Metals is trading higher following news of its rejection of the offer.
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