WCI calls off sale process, elects Icahn chairman

Thu Sep 6, 2007 4:42pm EDT

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NEW YORK, Sept 6 (Reuters) - Luxury home and condominium builder WCI Communities, Inc. WCI.N said on Thursday it has not received a definitive proposal to buy the company and it has decided to terminate the sale process.

Bonita Springs, Florida-based WCI also said billionaire investor Carl Icahn has been unanimously elected chairman of its board.

WCI shares closed down 3.8 percent at $8.66 on the New York Stock Exchange on Thursday. Earlier this year, WCI rejected a $22 per share buyout offer from Icahn.

On Aug. 22, WCI reported a quarterly net loss as it continued to have problems with the struggling U.S. housing market.

Icahn said in a statement: "Despite the rough road ahead, I believe in the long-term value of the company and view the WCI platform as a unique vehicle to take advantage of the current market disarray."

WCI said on Thursday it will continue to explore alternatives including a potential rights offering to strengthen the company's balance sheet.

(Reporting by Mark McSherry)

((Editing by Gary Hill; Reuters Messaging: mark.mcsherry.reuters.com@reuters.net; +646 223 6094)) Keywords: WCI ICAHN/

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