Carl Icahn has improved his bid for Clorox and rebuked the company’s management for defending its performance.
Yesterday, Icahn sweetened his offer from $76.50 to $80 and said it is ‘a bit absurd’ for the board to boast about its record and call his offer inadequate.
In a letter to Clorox filed with the SEC, Icahn says the board is ‘asking shareholders to take meaningful risk without giving them the opportunity to decide which option they would prefer.’
The activist also suggests the board’s interests are not aligned with shareholders, writing: ‘There is a very wise saying: If statesmen and generals were the first to go to the front-line, there would be no wars.’
To demonstrate his commitment to the bid, Icahn also offered to put $5.2 bn in escrow if the board accepted his offer and allowed due diligence.
In a statement, Clorox says it has received the new bid and will consider it in due course. On Monday the company rejected a $76.50 bid from Icahn, calling it ‘neither credible nor adequate’.
The household goods company, listed on the NSYE, also implemented a poison pill defence that would make taking over the company without board approval more difficult.
Icahn submitted the original offer on Friday, at which time he expressed the hope another company would come in with a higher bid of up to $100.
[Article by Tim Human, Inside Investor Relations]