Commercial Metals shifts stance and to review Icahn's offer

Fri Dec 9, 2011 11:42am EST

Investor Carl Icahn speaks at the Wall Street Journal Deals & Deal Makers conference, held at the New York Stock Exchange, June 27, 2007.  REUTERS/Chip East

Investor Carl Icahn speaks at the Wall Street Journal Deals & Deal Makers conference, held at the New York Stock Exchange, June 27, 2007.

Credit: Reuters/Chip East

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(Reuters) - Commercial Metals (CMC.N) said it will review billionaire investor Carl Icahn's $1.73 billion buyout offer, just days after dismissing it as "substantially undervalued" and "opportunistic."

"Consistent with its fiduciary duties, Commercial Metals' board, in consultation with its independent financial and legal advisers, will review the offer," the company said in a statement.

The company said the board intends to advise stockholders of its formal position regarding the tender offer within ten business days.

Earlier, in the day Icahn kicked off the tender offer and added he could seek a court order to compel Commercial Metals' board to remove a shareholders' rights plan that prevents him from raising his near-10 percent stake in the company.

Icahn, who controls about 10 percent of the company, is aiming to get the support of another 40 percent of shareholders to repeal the poison pill.

Commercial Metals shares were trading up 2 percent at $14.37 on Friday on the New York Stock Exchange. They are yet to touch the $15 offer price.

(Reporting by Swetha Gopinath in Bangalore; Editing by Supriya Kurane)

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