CMC Receives Notice of Intention to Nominate Directors
10/20/2011 - Commercial Metals Co. (CMC) has received notice from Carl Icahn, and affiliated entities, of their intention to nominate three candidates for election to CMC's Board of Directors at the company's 2012 Annual Meeting. The notice also contains the intention to make certain proposals at the meeting.
Commercial Metals Co. (CMC) has received notice from Carl Icahn, and affiliated entities, of their intention to nominate three candidates for election to CMC's Board of Directors at the company's 2012 Annual Meeting. The notice also contains the intention to make certain proposals at the meeting. Icahn and certain of his affiliated entities own shares representing beneficial ownership of approximately 9.98% of the company's outstanding shares in the aggregate.
The Nominating and Corporate Governance Committee of the Board will review these nominations, and the Board will make a recommendation that it believes is in the best interests of all of its stockholders. The company's Board of Directors currently has 11 members, and a class of three directors will stand for election at the Annual Meeting.
Joe Alvarado, President and CEO, said: "Our Board and management team always welcome constructive dialogue with stockholders, and we regularly review all options for generating and delivering value. In what continues to be a challenging environment for the entire steel industry, we have taken aggressive steps to improve operational and financial performance regardless of market conditions."
Noting that CMC has significantly strengthened its Board with the addition of four new directors over the last two years, Alvarado added, "We have a strong, independent, and experienced Board committed to acting in the best interests of all stockholders, and our new management team is focused on our strategy and executing on performance improvement initiatives. In addition to a previously announced realignment of our Americas operations, we have lowered our overall cost structure, restructured our fabrication business, and announced the exit of certain non-core businesses, including most recently our Croatian operations. We have a strong platform in place and are confident in our future prospects."
Commercial Metals Co. and subsidiaries manufacture, recycle, and market steel and metal products, related materials and services through a network including steel minimills, steel fabrication and processing plants, construction-related product warehouses, a copper tube mill, metal recycling facilities, and marketing and distribution offices in the United States and in strategic international markets.
