Activist investor Carl Icahn and Southeastern Asset Management are talking to banks and asset managers to line up $7 billion in bridge loans for their leveraged recapitalization proposal for Dell, according to sources with Reuters. Jefferies & Co is leading the bridge loan deal.
Dell Inc. (NASDAQ:DELL) has sent a letter to Carl Icahn and Southeastern Asset Management that they will not be providing more information about the company unless the board has determined that their proposal is “superior” to the one being offered by founder, Michael Dell. Carl Icahn and Southeastern partnered to offer $12 in cash per share or additional shares to existing investors for Dell earlier this month. That offered countered Michael Dell’s $24.4 billion bid.
Today Dell’s special committee asked Carl Icahn what the details are for his plans to acquire the computer maker company. The details Dell requested include how he would finance the offer and who would run the company. Carl Icahn and Southeastern Asset Management offered $21 billion in cash to keep the company public. This deal rivals the $24.4 billion deal that Dell founder Michael Dell offered for the company.
Dell Inc. has partnered with Airbus to offer electronic flight bag (EFB) systems for A320 airline operators. EFBs are an electronic system that is used for viewing and interacting with flight crew functions. It will replace paper operating manuals, airport charts, performance calculations, and navigation charts.
Dell has acquired cloud management software company, Enstratius. Through the acquisition, Dell will be able to offer end-to-end cloud solutions. Dell has been rapidly growing their cloud computing business as part of a bigger picture move to rely less on computer sales.
Private equity company, Blackstone has stepped down from a bid for Dell. Blackstone decided to get out of the bid because of lagging PC sales and Dell’s financial picture, according to Reuters. In Q1, 2013, sales of PCs dropped 13.9% globally.
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%.
Private equity company Blackstone Group LP has submitted a tentative offer to buy out Dell Inc. This deal rivals the $24.4 billion offer led by Silver Lake Management with participation from Dell founder Michael Dell and funding support from Microsoft. According to sources with Bloomberg, the bid will commit Blackstone to takeover discussions with the company.
