Icahn acquires larger stake in Dell, proposes new buyout deal
Icahn proposes Dell make a tender offer of up to $16 billion as part of a new proposal
IDG News Service - Carl Icahn has acquired a larger stake in Dell and called for a better buyout offer than the proposal of US$13.65 per share from Michael Dell and Silver Lake Partners.
Icahn has proposed that Dell commence a tender offer for around 1.1 billion shares at $14 per share, with a maximum value of $16 billion.
"Our proposal allows those who believe, like us, that the $13.65 price being offered in the Michael Dell/Silver Lake going private transaction significantly undervalues Dell, to continue to hold Dell shares," wrote Icahn in an open letter to Dell.
Dell announced in February that Michael Dell and investment firm Silver Lake had offered $24.4 billion, or $13.65 per share, to buy out the company. Icahn, along with Southeastern Asset Management, made several counteroffers, with the most recent involving a payout of $12 a share in cash or stock to shareholders, and $5.2 billion in debt financing. Dell's board of directors has recommended shareholders vote for the Michael Dell-Silver Lake offer.
Dell's board has raised concerns about Icahn's ability to raise $5.2 billion in debt financing. But Icahn took shots at the company in the letter, saying that with such comments Dell is undervaluing itself.
"We are amazed by these statements by the Dell Board. In what other context would the person tasked with selling a product actually spend their efforts negatively positioning the very product they are trying to sell? Is that how the supposed "go-shop" was conducted? Can you imagine a real estate broker running advertisements warning of termite danger in a house each time a prospective buyer seems interested?"
Icahn also said that he had acquired 72 million Dell shares from Southeastern, adding to the approximately 72 million shares he already owns. Combined, Icahn and Southeastern own 13 percent of Dell.
- Best iPhone, iPad Business Apps for 2014
- 14 Tech Conventions You Should Attend in 2014
- 10 Desktop Apps to Power Your Windows PC
- How to Add New Job Skills Without Going Back to School
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- Building a Bridge to the Next Generation Data Center Selecting a widely adopted operating system is a foundational component of a standardization strategy.
- HP HAVEn: See the big picture in Big Data HP HAVEn is the industry's first comprehensive, scalable, open, and secure platform for Big Data. Enterprises are drowning in a sea of data...
- Piecing Together the Business Intelligence Puzzle Business intelligence (BI) technology collects and analyzes company data, delivering relevant information to corporate decision-makers in an effort to produce favorable outcomes.
- Harness IT -- An Introduction to Business Intelligence Solutions Learn the key selection criteria required to provide your organization with the capability to address structured data, unstructured data and mobile demands so...
- Cloud Knowledge Vault Learn how your organization can benefit from the scalability, flexibility, and performance that the cloud offers through the short videos and other resources...
- Testimonial: Cystic Fibrosis Trust Peter Hawkins, the Head of IT for Cystic Fibrosis Trust, discusses the role CommVault's Simpana software platform plays in improving the company's information... All Data Center White Papers | Webcasts