Commercial Metals Company Takeover Bid Under Investor Investigation

If you purchased shares of Commercial Metals Company (NYSE:CMC) prior to the announcement and currently hold those shares, you have certain options and you should contact the Shareholders Foundation, Inc.

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Company Name(s): 
Commercial Metals
Affected Securities: 

San Diego, Nov. 28, 2011 (Shareholders Foundation) -- Following a media report about a potential takeover of Commercial Metals Co. an investigation on behalf of investors in Commercial Metals Company (NYSE: CMC) shares was announced.

The investigation by a law firm is at an early stage and concerns whether Commercial Metals Company, certain of its officers and directors, and/or others breach their fiduciary duties owed to Commercial Metals (NYSE:CMC) investors in connection with the proposed acquisition.

On Monday, Nov. 28, 2011, a media report said that Carl Icahn offered in a letter to Commercial Metals directors to acquire Commercial Metals Co. for about $1.73 billion or $15 per CMC share, without any financing or due diligence conditions.

Following the media report that Carl Icahn offered to acquire Commercial Metals Company (Public, NYSE:CMC) NYSE: CMC shares jumped during Monday to $14.25 per share.

However, CMC shares traded recently above the current $15 offer. In fact, NYSE:CMC stocks traded as early as May 10, 2011 as high as $16.17 per share, on April 29th as high as $16.76, on April 5th as high as $17.68, and on February 17, 2011 as high as $18.09 per share.

Therefore, the investigation concerns whether the Commercial Metals Board of Directors will undertake an adequate sales process and in particular breach their fiduciary duties to Commercial Metals Company (NYSE:CMC) shareholders by failing to adequately shop the Company before entering into any transaction. Furthermore the investigation concerns on whether any acquiror would underpay for NYSE:CMC shares, thus unlawfully harming Commercial Metals (CMC) stockholders.

Commercial Metals performance increased over the past years. In fact, Commercial Metals’ 12months Total Revenue rose from $6.40billion for a 12months period ending on August 31, 2009 to $7.91billion for a 12months period ending on August 31, 2011. Shares of Commercial Metals Company (Public, NYSE:CMC) rose from as low as $7.61 per share in November 2008 to over $20 per share in 2009. During 2010 NYSE CMC stocks traded almost entirely above $14 per share. In the first five months in 2011 CMC shares continued to trade above $14 per share.

A potential securities class action lawsuit would seek to maximize the amount of money and information Commercial Metals (NYSE:CMC) shareholders would receive in a buyout, so the law firm.