Clorox Stock - Carl Ichan Sort Of Offers
To Buy It
I very much
appreciate Carl Ichan's "sort of" 12.6
billion bid for Clorox, which prices the
shares at $76.50, but honestly earlier
this week all the activity in the Call
Options and Stock certainly should have
triggered a warning light to the SEC.
Isn't this just the kind of event that
screams "insider"?.
Below is the year to date chart for Clorox. Where
Ichan announced his position in Clorox is pretty
obvious. This week's activity is also obvious.
Isn't this why there is an SEC? Aren't they suppose
to be aware of these types of events? No wonder so
many investors feel that there is no level playing
field. Meanwhile Ichan's actual bid is more a push
to the Clorox Board of Directors, to put the company
up for sale. In a letter he told the Board of
Directors that he believes $76.50 a share is fair
value and believes shareholders are better served by
putting the company up for sale.
His letter he gave the directors of Clorox a list of
companies which the board of directors could
approach, to be bought out. In other words Ichan is
placing Clorox out there for competitors to consider
for purchase. He also indicated in the letter, that
if Clorox accepts his bid by July 29 and Ichan
Enterprises is unable to complete the deal, the firm
will pay Clorox $100 million. I wonder if this will
just be part of the profits he had made in the stock
after purchasing it in December 2010.
So does this mean that Clorox is up for sale? Not
really. Does it mean Ichan is getting tired of
holding so many shares and wants to see some
appreciation in share value? Who knows. Does it mean
that Clorox might be sold. Perhaps. Is this just
another Carl Ichan event which he is famous for?
Absolutely.
It should be interesting to watch events going
forward. Meanwhile I am nicely set up, one way or
the other, in Clorox. At this morning's open I sold
my short term calls and bought and closed my puts.
You can
read about the trade here.
