Wednesday, November 30, 2022

Icahn Continues to Fight for Dell

Earlier this month, a special committee appointed by Dell’s board urged shareholders to accept founder Michael Dell’s proposal to take the company private, saying an an alternative proposed by investor Carl Icahn was unworkable. But Icahn hasn’t given up. This week, he made a presentation stating his case, and he is reportedly seeking loans in support of his plan.

Michael J. De La Merced with The New York Times reported, “Two of Dell Inc.’s biggest outside investors on Monday laid out the most comprehensive defense of their plan for the company to date, while attacking the company’s planned $24.4 billion sale to Michael S. Dell and the investment firm Silver Lake. In a presentation for fellow investors, Carl C. Icahn and the money manager Southeastern Asset Management argued that Dell remained worth much more than the $13.65 a share that Mr. Dell and his partner are offering. Instead, the alternative proposal — in which the company would buy back 1.1 billion shares at $14 each — would offer existing stockholders more money while giving them a chance to keep a piece of the company.”

Abram Brown with Forbes added, “In a new presentation made public this afternoon, hedge fund titan Carl Icahn and Southeastern Asset Management presented figures showing Dell would be less indebted after their alternative idea than if the $13.65-a-share management buyout happens. Dell’s special committee has concluded the exact opposite, throwing its weight behind the proposal from founder Michael Dell and private equity shop Silver Lake Partners.”

The Wall Street Journal’s David Benoit noted, “In an updated shareholder presentation Monday, the special board committee charged with negotiating the buyout of the technology and personal-computer company said the latest proposal from Mr. Icahn and Southeastern Asset Management ‘lacks credibility’ and that Mr. Icahn has been ‘inconsistent’ with his offers.”

According to Bloomberg’s Sridhar Natarajan and Jeannine Amodeo, Carl Icahn is approaching investors for $5.2 billion in loans backing his buyout offer for personal computer maker Dell Inc. (DELL) Icahn tapped Jefferies Group LLC to arrange a $2.2 billion six-year term loan and a $3 billion 3 1/2-year term piece, according to a person with knowledge of the offering, who asked not to be identified because terms aren’t set.”

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