HindustanTimes Wed,22 Oct 2014

Icahn agrees to limit Dell stake, can team up on bid

Reuters   April 16, 2013
First Published: 18:22 IST(16/4/2013) | Last Updated: 18:45 IST(16/4/2013)

Billionaire investor Carl Icahn has agreed to limit his investment in Dell Inc and in return can team up with other shareholders on a potential bid for the personal computer maker, Dell said on Tuesday.


An agreement with activist investor Icahn prevents him from buying shares that would bring his Dell ownership to more than 10 percent or signing deals with other shareholders that would bring their collective ownership to more than 15 percent, Dell said.

Icahn, who owns a $1 billion stake in Dell, is part of a group of shareholders opposed to a proposal by founder Michael Dell and private equity firm Silver Lake to take the company private.

Icahn and private equity company Blackstone have each offered alternative that would keep part of the company public. They have had preliminary talks about working together.

Southeastern Asset Management, the activist investor that owns 8.4 percent of Dell, said earlier this month the computer maker's evaluation of a $24.4 billion leveraged buyout deal with its founder and buyout firm Silver Lake was flawed.

Southeastern published a letter it sent to Dell's board of directors asserting the company's March 29 proxy statement failed to make a compelling case for shareholders to accept the $13.65 per share offer from Michael Dell and Silver Lake. The letter says Dell's special committee did not properly explore all options.

Dell was regarded as a model of innovation as recently as the early 2000s but has struggled to make up for declining market share of the global PC market.

more from Business

Gold is glittering this Dhanteras

Gold is glittering this Dhanteras as jewellers are experiencing good sales driven by better prices compared to last year. Last year, there was a supply crunch of gold in the market after the government hiked its import duty to 15% to curb higher import as that was causing imbalance in the current account deficit in the country.
Most Popular
Copyright © 2014 HT Media Limited. All Rights Reserved