Icahn Offers to Buy Clorox in Hopes of Bidding War

July 15, 2011
Price tag of $12.6 billion

Billionaire investor Carl Icahn has made an unsolicited offer to buy Clorox in a deal valued at $12.6 billion, the consumer-products company disclosed on July 15.

Icahn offered Clorox shareholders $76.50 per share, a premium of 12% to the stock's July 14 closing price, in a letter to Clorox chief executive Donald Knauss that Clorox filed with the U.S. Securities and Exchange Commission.

A famed corporate raider who already owns 9.4% of Clorox, Icahn said he hoped his offer would stimulate other takeover bids.

"While we stand ready and able to buy Clorox, we encourage you to hold an open and friendly 'go-shop' sale process where all the synergistic buyers are offered due diligence and invited to bid.

"If the company does so, we are confident the process will result in numerous superior bids for this company," Icahn said in the letter.

The offer caused Clorox's stock to surge nearly 8% on the New York Stock Exchange, about three hours about markets opened.

Under the terms of the offer, Icahn Enterprises would pay for the deal using $4.8 billion in cash and stock and $7.8 billion in debt financing.

Oakland, California-based Clorox makes a variety of consumer products sold under different brands around the world but is best known for its household bleach and cleaning products. It had over $5.5 billion in sales last year.

Copyright Agence France-Presse, 2011

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