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Icahn, who runs investment firm Icahn Enterprises (IEP), says he does not wish to remain a minority holder in a company run by the current board. The investor, which holds 10% of Commercials Metals, has been sharply critical of its board recently.
The billionaire said he will drop the proxy fight against Irving, Texas-based Commercial Metals if a minimum of 40.1% of commercials shares are not tendered in the offer. If more are tendered, Icahn says his company would continue to fight to acquire Commercial Metals or see it is sold.
Earlier this month, Icahn launched a $15-a-share offer for the company in an unsolicited bid that values Commercial Metals at about $1.73 billion. The company’s board last week urged shareholders to reject the bid, calling it “opportunistic” and well below the company’s value.
On Tuesday, Icahn again expressed his interest to buy the company and said it would fit well with Icahn Enterprises’ existing materials business.