(REUTERS) -- Billionaire investor Carl Icahn on Wednesday dropped his $1.73 billion hostile bid for Commercial Metals Co and withdrew his nominations to the metals recycler's board.

Shares of the company fell more than seven percent in trading before the bell. They closed at $14.76 Tuesday on the New York Stock Exchange.

Icahn, who controls about 10 percent of the company, was aiming to secure support from another 40.1 percent of stakeholders to overcome a shareholders' rights plan that prevented him from raising his stake.

The activist investor said about 23 percent of the shares were tendered. He said no shares were purchased, and all shares previously tendered and not withdrawn would be returned.

Commercial Metals had dismissed the $15-a-share tender offer as substantially undervalued and opportunistic.

(Reporting by Swetha Gopinath in Bangalore; Editing by Saumyadeb Chakrabarty)