Tags: Clorox | Icahn | Directors

Clorox Drops After Carl Icahn Withdraws Slate of Directors

Monday, 26 Sep 2011 01:05 PM

Clorox Co. declined in trading before the opening of the New York Stock Exchange after investor Carl Icahn withdrew a slate of directors for the company and said shareholders wouldn’t support his plan for a sale.

Clorox, based on Oakland, California, fell $4, or 5.8 percent, to $65.40 at 8:33 a.m. The shares had gained 9.7 percent this year before today.

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.

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. and Kimberly-Clark Corp. 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Clorox in an e-mailed statement confirmed that Icahn’s nominees were withdrawn and said it is “confident” its strategy of focusing on consumer trends will benefit shareholders.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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