Carl Icahn Agrees To Cap His Stake In Dell And Team Up On Bid
Carl Icahn is a billionaire investor that has agreed to cap his investment limit on Dell Inc. He will be able to team up with other shareholders on a potential bid for Dell going forward. As part of an agreement, Icahn will not be able to bring his Dell ownership to over 10% or sign deals with other shareholders that would bring the collective ownership to over 15%.
Icahn currently has a $1 billion stake in Dell and is working with shareholders to oppose a proposal from Michael Dell and private equity company Silver Lake to take the company private. Icahn and private equity company Blackstone have offered separate alternatives for Dell Inc. to stay public. Blackstone and Icahn have also chatted about working together on a deal.
Another activist investor Southeastern Asset Management, owns 8.4% of Dell. Southeastern is currently evaluating the $24.4 billion LBO from Michael Dell and Silver Lake, but believes that it is flawed. Southeastern publisher a letter to Dell’s board of directors that says the company’s March 29th proxy statement failed to make a compelling case for shareholders to accept a $13.65 per share offer from Dell and Silver Lake. The letter also says that Dell’s special committee did not explore more options properly.