I Can't: Clorox Board Unanimously Rejects Carl Icahn's Bid
Noting that the proposal from Carl Icahn to acquire Clorox (NYSE: CLX) "substantially undervalues the company," the Clorox Company announced Monday that its board of directors unanimously rejected the offer.
"Our board has unanimously determined Mr. Icahn's unsolicited proposal is neither credible nor adequate," Lead Director Gary Michael said.
Icahn offered on Friday to pay $76.50 per share of Clorox, a 12% premium to the stock's Thursday closing price. The bid values the company above $10 billion.
Icahn is the biggest shareholder in Clorox. He is known for his activist investor role, especially for making noise in the boardroom.
Chairman and CEO Don Knauss notes: "At Clorox, we have a proven track record of delivering superior financial returns to our stockholders."
"Importantly, over the last three years since the start of the global recession, Clorox's total stockholder return was 43 percent versus 10 percent for the S&P 500 and 34 percent for our comprehensive consumer packaged goods peer group."
The Clorox Company is a manufacturer and marketer of consumer and institutional products, including Armor All car cleaning products, Fresh Step kitty litter, Hidden Valley ranch dressing, and Brita water-filtration systems.
The company's market capitalization stands just over $10 billion.
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