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Icahn Steps Back from Clorox

Monday, 26 Sep 2011 | 5:38 PM ET

Although millions of Americans clean their houses with Clorox , ironically Carl Icahn couldn’t clean house at Clorox.

On Monday the billionaire investor and Fast Money friend withdrew his slate of nominees for Clorox’s board, saying many of the bleach maker's shareholders would not support his effort to unseat the board and may not think it is the right time to sell the company.

Icahn, Clorox's largest shareholder, last month nominated himself, his son and nine other people for election to the board at its next annual shareholder meeting after the board twice rejected his earlier offers to buy the company.

In a regulatory filing on Friday, Icahn repeated his belief that "the best way to ultimately maximize shareholder value is through a sale" of Clorox to a strategic buyer.

But Icahn also said he understands shareholder concerns - that the difficult conditions in the financial markets mean "now is not the best time" to sell Clorox and that Icahn's offer to buy Clorox for $80 per share undervalues the company.

Shares fell on the news with investors skeptical that if Carl Icahn couldn’t unlock shareholder value, nobody could. ”I’m out,” reveals Karen Finerman. “I took my lumps.”

Finerman can't help but wonder, "what's Icahn going to do with his 10% of the company now? I don't want to be in front of that!"

Clorox Tumbles
Debating whether Carl Icahn's bid for Clorox was a realistic deal, with the Fast Money traders.






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Trader disclosure: On Sep 26, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour owns (AAPL); Seymour owns (BAC); Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Terranova is long VRTS; Terranova is long OXY; Terranova is long HOS; Terranova is long OIH; Terranova is long CVI; Terranova is long AXP; Terranova is long EMC; Terranova is long WFM; Terranova is long AMZN; Terranova is long WFC; Terranova is long AAPL; Terranova is long IBM; Terranova is long Silver puts; Finerman and Finerman’s firm own AAPL short calls; Finerman owns (BAC) and Finerman’s firm own (BAC) leaps ; Finerman owns GOOG; Finerman’s firm owns IBM; Finerman’s firm owns JPM leaps; Finerman’s firm owns M; Finerman and Finerman’s firm own MSFT; Finerman and Finerman’s firm own ORCL; Finerman owns IWM; Finerman owns MDY; Finerman owns SPY

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