Carl Icahn now pressing $14-per-share alternative to Dell buyout

Carl Icahn now pressing $14-per-share alternative to Dell buyout

Summary: UPDATED: Dell's special committee responds to the American financier's latest proposal.


Dell's plans to revert to being a private company has been stalled once again.

American business magnate and Dell investor Carl Icahn has proposed a new alternative that could derail another potential plan spearheaded by the company's founder and CEO Michael Dell.

According to Icahn's new proposal, the financier is pressing for the company to now offer $14 for each of its approximately 1.1 billion shares.

As of June 5, the Round Rock, Texas-based corporation had two options on the table:

  • An all cash deal from Michael Dell and Silver Lake Partners for $13.65 per share
  • An alternative from Icahn that leverages the company to pay a $12 special dividend

To recall, Blackstone was previously involved in the mix but later dropped out amid the global PC market meltdown.

Icahn's ongoing plan to prevent Dell from going private has long been supported by Southeastern Asset Management Inc., one of the largest Dell shareholders.

But he might have another major ally now too.

In a letter to Dell shareholders this week, Icahn asserted that he also had support from another large investment bank -- without revealing any names.

CNBC reported via Twitter on Tuesday that banking firm is Jefferies.

UPDATE: Reiterating its stance against Icahn's proposal earlier this month, Dell's special committee has reportedly rebuffed the new $14-per-share idea.

The group is sticking by its original $13.65 deal for now.

via Bloomberg

Topics: Tech Industry, Dell, Legal, PCs

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  • And why does Icahn want to prevent Dell from going private?

    Could it be that he's a stock speculator trying to stop a trend that's contrary to his financial interests?
    John L. Ries
    • Icahn would never do that!

      He's really looking out for the employee's/sharholders best interested, no matter how he makes, and how much they, and everyone else losses.

      No really, he's a good guy! /s
      William Farrel
  • I'd way rather have Michael Dell running Dell than Carl Icahn

    If Icahn gets Dell he will run it into the ground. As I am a Dell customer I would rather not see that happen. I value my long-term support contract.