Posted on 03/14/2007 10:04:19 AM PDT by summer
Billionaire Carl Icahn plans to launch a $22-a-share offer for struggling Bonita Springs-based home builder WCI Communities Inc.
Icahn, a major investor in WCI with nearly a 15 percent stake, announced Tuesday that he and his affiliates would buy "any and all" stock at the offer price. His offer price was 16 percent more than Monday's closing price. It's a deal valued at more than $950 million.
WCI's shares surged on the news. The stock closed at $21.80 Tuesday, up $2.83, or nearly 15 percent.
Icahn, known for pressuring management to improve financial performance in the companies he has invested in, wants to run his own slate of officers for WCI's board. His list of candidates includes himself.
In a statement, Icahn said he believed his offer was "in the best interest of all shareholders."
"We believe that the board and the CEO of WCI have not enabled the company to maximize the potential of its unique set of assets. ... We expect our slate ... to ensure these unique assets are properly marshaled through the current residential housing industry downturn," Icahn said.
WCI officials weren't commenting on his offer Tuesday. But it had other shareholders — big and small — talking.
"As a shareholder, I would not be the slightest bit interested in his takeover bid," said Phil Wood, president of Naples-based John R. Wood Realtors Inc. "I would rather leave everything with the present board and let them keep running the company."...
(Excerpt) Read more at naplesnews.com ...
Interesting.
My bother designs homes in the Fort Myers area. Probably owns some shares of WCI too.
I thought it was quite interesting, too, especially since we just got all this bad news yesterday about the stock market.
This local news was also in the NYT Business section. I guess it is a big deal.
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