Icahn Stake Loses Value as Clorox Success Returns Cash: Real M&A

Billionaire Carl Icahn’s investment in Clorox Co. gives him a stake in a company that is already squeezing more profit from sales and generating more cash than any U.S. household products maker. That may make it harder for the activist to push for a sale or breakup.

Clorox, which makes everything from its namesake bleach to Hidden Valley ranch salad dressing and Kingsford charcoal, earned about 20 cents before interest and taxes for every dollar of sales in the past year, more than any U.S. competitor that has also boosted cash from operations for three years, according to data compiled by Bloomberg. Clorox’s shares have gained less than 1 percent on Icahn’s disclosure of a 9.1 percent stake last week after retreating 6.2 percent yesterday.