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Rebuffed Icahn seeks seats on Clorox board

New York Times / August 20, 2011

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Carl C. Icahn stepped up his fight with Clorox yesterday, threatening to replace the company’s entire board with his own candidates after the consumer products giant rebuffed his $10.7 billion takeover proposal.

In a letter to Clorox, Icahn named a full slate of 11 directors, including himself.

Clorox said in a statement that it would review the proposed slate, but added: “We believe that Mr. Icahn is nominating candidates solely to advance his own agenda.’’

The proxy fight comes after repeated efforts by Icahn - who, with a 9.4 percent stake, is the company’s largest shareholder - to force Clorox into a sale.

The activist investor has made two successive bids, the latest of which is worth $80 a share.

But he has argued that a bigger buyer - perhaps a consumer-products giant like Procter & Gamble - could come in with a higher bid, possibly $100 or more.

Clorox’s management has said that while it may consider a sale, it does not believe that Icahn’s offers have any credibility.