Billionaire investor Carl Icahn is likely going to walk away from the proxy battle that he started at PC manufacturing company, Dell Inc. Carl Icahn is going to drop his bid for Dell due to funding issues, according to CNBC. Apparently Icahn and Southeastern Asset Management is having a hard time putting together $5.2 billion that is needed for making an offer for Dell.
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Yahoo! is also in the race to acquire Hulu and sources with AllThingsD are reporting that they are putting in a bid at between $600 and $800 million for the video websites. The large price range is due to different circumstances including the length of licensing rights for content and how much control that the programming companies selling Hulu have over their content.
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.
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 Silver Lake Partners is close to raising a new $10 billion fund, which is about 25% bigger than originally expected. Silver Lake Partners is the company that is working with Michael Dell to take his Dell Inc. private and sold Skype to Microsoft.
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 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 is currently in talks to go private by private equity companies. Several large banks were contacted about financing an offer to buy out the company. Dell is currently valued at about $23 billion and they reported $13.7 billion in their most recent quarter’s revenues with a net income of $475 million. The company also has around $11 billion in cash.
