Icahn ends commercial metals contest after tender falls short

Billionaire Investor Carl Icahn is ending his proxy fight against the board of Commercial Metals Co. after his tender offer received 23 percent of the steelmaker’s shares, less than the 40.1 percent he sought.

“We respect the views of the shareholders and hopefully their decision not to tender will prove to be the right one,” Icahn, Chairman of New York-based Icahn Enterprises Holdings LP, said today in a statement.

Getting at least 40.1 percent of the stock would have given Icahn a majority when combined with his current stake of about 10 percent. Icahn offered $15 a share for Irving, Texas-based Commercial Metals.

Icahn said in November that he was seeking control of Commercial Metals and that he would sell “non-core” assets, appoint new management and combine the company with his existing metals-recycling assets.

Commercial Metals said Dec. 19 that investors should reject the $1.73 billion offer as too low. The steelmaker plans to close or sell a mill in Croatia, shut rebar-fabrication plants and reduce its global workforce.

Commercial Metals distributes steel and also collects scrap that it melts to make products such as rebar used in construction.