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.
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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.
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.
Carl Icahn is going to fight the sale of Dell. Icahn hinted at “years of litigation” if Dell does not cancel the $24.4 billion deal to sell the company to the founder, Michael Dell. Michael Dell bought out the company with private equity company Silver Lake and a loan from Microsoft. Icahn did not disclose how much stake he owned in Dell, but claimed that his holdings are “substantial.” Supposedly Icahn owned a 6% stake in the company, which was acquired in recent weeks.
Dell To Go Private As Michael Dell, Microsoft, Silver Lake, and MSD Capital Put In Their Money For It
Dell has gone private and is being taken off the stock market. The company is being financed with cash and equity from Dell founder Michael Dell and funds from Silver Lake and MSD Capital. Microsoft is giving Dell a $2 billion loan.
Dell founder Michael Dell is seeking a buyout of the PC manufacturing company that he founded in 1984. Rumor has it that he would combine his 15.7% stake with along with $1 billion of his personal funds. Michael Dell would be contributing around $500 – $1 billion in equity financing according to sources with Bloomberg.