Clorox Shares Drop After Investor Carl Icahn Withdraws Slate of Directors
Stock Chart for Clorox Co/The (CLX)
Clorox, based in Oakland, California, fell $2.96, or 4.3 percent, to $66.44 at 4 p.m. in New York Stock Exchange composite trading, the most since Aug 8. The shares have gained 5 percent this year.
Several large shareholders don’t consider it a good time to try to sell Clorox because of the deteriorating financial markets and the company’s opposition, New York-based Icahn Capital LP said Sept. 23 in a filing with the U.S. Securities and Exchange Commission.
Icahn had been counting on a buyer to step forward, and “he miscalculated,” Gregg Fatzinger, who heads Nomura Holdings Inc.’s consumer and retail investment banking practice, said today in an interview.
The maker of bleach and Glad trash bags rejected multiple takeover proposals from Icahn, with the highest valuing the company at $10.7 billion, or $80 a share. Icahn, who had named Procter & Gamble Co. (PG) and Kimberly-Clark Corp. (KMB) as potential buyers, said on Sept. 23 that a sale of Clorox still is the best way for the company to boost its value.
Clorox in an e-mailed statement confirmed that Icahn’s nominees were withdrawn and said it is “confident” its strategy of focusing on consumer trends will benefit shareholders.
In July, Clorox rejected Icahn’s second offer, saying that it was inadequate and that following its strategic plan would create more value for shareholders. Icahn’s first offer for Clorox earlier that month valued the company at $10.2 billion, or $76.50 a share.
Icahn last month said he’d back up his campaign to oust Clorox’s directors with a $10.3 billion offer that wasn’t conditioned on financing or due diligence.
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