To give credit where due, Carl Icahn rolls with the punches and always seems to have at least a couple of ideas percolating on the back burner. After an ill-fated attempt to acquire Clorox (NYSE: CLX), Icahn (through Icahn Enterprises (NYSE: IEP)) is at it again, this time attempting to acquire mini-mill and recycling operator Commercial Metals (NYSE: CMC), in a cash deal. While this is a relatively rare ray of sunshine in the primary metals industry, investors shouldn't rush to assume this is the beginning of a new merger wave.
The Deal
Icahn has publicly offered $15 a share for Commercial Metals, an offer that totals about $1.73 billion and represents a 31% premium to Nov. 25, 2011's, close. That said, it's not an especially generous offer. Commercial Metals has been in a slump lately, but was trading above $15 as recently as May, despite what has been a bad operating environment for better-regarded mini-mill competitors, like
Nucor (NYSE:
NUE) and
Steel Dynamics (Nasdaq:
STLD).
Read the full piece here:
http://stocks.investopedia.com/stock-analysis/2011/Icahn-Tilts-At-Commercial-Metals-CMC-STLD-IEP-CLX-NUE-AA-MT-FCX1130.aspx
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