WCI says slumping housing market affecting sale of the company; more alternatives sought

By Lisa Kerner

Charlotte, N.C., July 26 - WCI Communities, Inc. said it has not received a definitive proposal for the purchase of the company, despite initial interest from several companies.

The challenging sales process is attributed to "deteriorating conditions and uncertainty in the homebuilding and debt markets," according to a WCI news release.

WCI's board will continue the sale process and explore other potential strategic and financial alternatives, including asset sales, strategic partnerships, minority investments and recapitalization transactions.

Board chairman Don E. Ackerman added that WCI will emphasize cash flow, debt reduction and operating efficiency, while reducing spending and overhead expenses.

As previously reported, WCI adjourned its June 15 annual meeting until Aug. 30 in order for potential purchasers of the company to continue their due diligence.

On June 11, Carl Icahn urged fellow WCI shareholders not to vote at or attend the company's annual meeting in order to preclude the re-election of the company's board prior to completing a sale of WCI. Icahn believes the company is "obfuscating the current proxy fight" and is "using the sales process as an excuse and pressure to re-elect its current board for another year," according to a news release.

Icahn's $22-per-share cash tender offer for WCI's stock expired on May 18, with none of the approximately 10.8 million shares tendered being purchased by his affiliates because of WCI's poison pill.

WCI is a Bonita Springs, Fla., builder of master-planned lifestyle communities.

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