Icahn Ratchets Up Dell Fight
Source: Wall Street Journal
Dell Inc. Thursday said activist investor Carl Icahn is pushing for a huge special dividend instead of a planned $24.4 billion leveraged buyout by founder Michael Dell, and threatened the company with "years of litigation" if it doesn't combine a vote on the deal with its annual meeting.
In a letter released by Dell Thursday, Mr. Icahn said he has a "substantial" position in the company, and asked Dell to pay a per-share dividend of $9 if the deal is voted down by shareholders. He said that by his calculations, that transaction would be superior to the current going-private offer, citing a "stub" value of $13.81 a share which, combined with the special dividend, represents a 67% premium to the current $13.65 per-share offer price.
"We have spent a great deal of time and effort in determining the $22.81 per share value and would be pleased to meet with you to share our analysis and to understand why you disagree, if you do," said Mr. Icahn in his letter.
Dell responded by, yet again, underscoring that it is conducting a "robust" "go-shop" process and that its adviser Evercore is actively soliciting potential alternative proposals as part of a go-shop period that ends March 22. It added that it welcomes Mr. Icahn's help in finding an alternative proposal.
Read more: http://online.wsj.com/article/SB10001424127887324128504578345921882404846.html
= new reply since forum marked as read
