Metals company fights takeover
IRVING, Texas — Commercial Metals Co. recommended Monday that shareholders reject a $1.73 billion hostile bid by billionaire investor Carl Icahn, saying it undervalues the company. The metal company said the $15-per-share tender offer is a bad deal for shareholders, and its own strategic plan will deliver better value. Its board has already rejected an Icahn offer. The bid is a 31 percent premium over the company's market value as of Nov. 25, the last trading day before Icahn announced the buyout offer.
Winn-Dixie chain to be sold
GREENVILLE, S.C. — The supermarket chain Winn-Dixie is being sold in a deal valued at $560 million to Bi-Lo LLC, the companies said Monday, creating a huge grocery operator in the South. Shares of Winn-Dixie, which has more than twice the number of stores of its buyer, jumped about 70 percent in early trading. The company had struggled in the past, entering into bankruptcy protection in 2005, but has been revamping operations in recent years. The combined company will have about 690 stores and 63,000 workers in eight states in the southern U.S. Winn-Dixie Stores Inc. will become a privately held subsidiary and its ticker will be removed from the Nasdaq. Bi-Lo is a private company. Each Winn-Dixie stockholder gets $9.50 per share in cash, a 75 percent premium to the Jacksonville, Fla. company's Friday closing stock price.
Company sorry for outage
LOS ANGELES — The president of Southern California Edison is sending letters of apology to hundreds of thousands of people who were left without electricity — some for as long as a week — during a devastating windstorm last month. Edison will do better next time when it comes to restoring power and keeping people informed about the efforts, Ron Litzinger, company president wrote, noting the company has learned from its experience. The state Public Utilities Commission has launched an investigation into Edison's response to the storm.
Gold deal worth $2.4 billion
Canadian gold and iron producer Eldorado Gold Corp. said Sunday it will buy European Goldfields Ltd. in a deal worth about $2.4 billion, increasing its ability to produce gold. The Vancouver, British Columbia, company said its offer values each European Goldfields share at $12.59, based on Eldorado's closing stock price on the Toronto Stock Exchange Friday. That comes to $2.5 billion. It's a 10 percent premium to European Goldfields' closing price on the Toronto Stock Exchange Friday.
From wire reports