NEW YORK (AP) -- Billionaire investor Carl Icahn has bought a nearly10 percent stake in Commercial Metals Co., signaling he may speak with the company's management about its business and strategic alternatives, according to a regulatory filing.
Shares in Commercial Metals surged 8.3 percent in aftermarket trading.
Icahn and affiliated funds bought 11.5 million shares between June 16 and Thursday, according to documents filed Thursday with the Securities and Exchange Commission.
That amounts to a 9.98 percent stake in the Irving, Texas company.
The filing said the activist investor believed the shares were undervalued. The shares have traded between $12.12 and $18.20 over the past 12 months. They added $1.19, or 8.3 percent, to $15.49 in aftermarket trading.
Commercial Metals Co. manufactures, recycles and markets steel and metal products, among other materials.
The company moved to a profit of $36.2 million, or 31 cents a share, in its fiscal third quarter ended May 31. It lost $8.8 million, or 8 cents a share, in the same quarter last year.