Cleaning & Maintenance Management Online

Clorox rejects revised bid

July 27, 2011

NEW YORK — Clorox has once again rejected investor Carl Ichan''s takeover bid, according to the New York Times.

In a letter to Ichan, Clorox stated that the offer was still inadequate, the article stated.

According to the article, the company felt that Ichan''s offer undervalued the company and still lacked firm details about the financing and closing conditions.

"Our board has carefully considered Mr. Icahn''s revised proposal and concluded that it is inadequate and unlikely to be completed," said Gary Michael, Clorox''s lead independent director, in a statement.

"The board also believes Mr. Icahn''s revised proposal lacks detail and contains significant conditionality," Michael added.

Clorox has said it would entertain a "credible" takeover offer, but has outlined several elements of what the bid would contain, including fully committed financing and equity capital and provisions such as a reverse breakup fee that would be payable to Clorox if the takeover failed, the article noted.

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