Icahn Offers $22 a Share for WCI Communities, Stock Soars
Billionaire investor Carl Icahn said on Tuesday that he would launch a tender offer for home builder WCI Communities
Shares of WCI soared on the news.
Icahn said in February that he and nine others were seeking seats on the WCI board after having increased his stake in January. He said that he wanted to hold discussions with the Florida-based company about how to "unlock the inherent value" of its shares.
On Tuesday, Icahn said the company's board and top executive have not enabled WCI to maximize the potential of its assets, which he said trade at a discount to their book value.
He said he would ensure the assets are properly managed through the current housing industry downturn. Icahn has agitated for change at many companies and is currently also seeking board seats at Motorola
The tender offer for WCI is not subject to any minimum condition, he said. Closing of the offer will be subject to the redemption of the company's recently adopted poison pill, a tactic used to fend off hostile takeovers.