Carl Icahn has signed a pact with Dell that will allow him to review the company’s financials. Icahn signed a “confidentiality agreement” with Dell. Dell’s board of directors is currently conducting a sales process and said last week that they will be welcoming Icahn into the process. Last month Dell founder Michael Dell announced that he was going to take the company private through partnerships with Silver Lake, MSD Capital, and Microsoft. Another private equity company, Blackstone Group, also signed a similar agreement in order to access Dell’s books.
Carl Icahn has a “substantial” stake in Dell and opposed the buyout that Michael Dell came up with. Icahn said that he wanted the board to sell new debt to fund a $9 special dividend to shareholders. He also wanted the board to accept that plan or let shareholders vote at a special meeting on a new board slate to accept that plan. He threatened the company with “years of litigation” if they did not comply.
Dell’s special committee negotiated the $24.4 billion buyout with Michael Dell and his partners and they are currently in the process of shopping around to make sure that there is not a better deal. The company also explored a leveraged recapitalization.