Carl Icahn To Increase Bid On Dell Tomorrow

Posted Jul 11, 2013

Billionaire activist investor Carl Icahn is going to increase his bid on Dell tomorrow morning.  When speaking on Bloomberg TV, Icahn said that he will be adding warrants to his bid of $14 per share for 72% of the total shares.  He did not offer other details, but he said that Dell shareholders would be presented with a new offer on Friday morning.

The warrants would give shareholders the future rights to purchase additional shares of the company based on certain conditions.  The warrants would be for rights to buy the shares at a price of $20.

Within the last day or so, Icahn published an open letter to Dell’s shareholders asking them to use their appraisal rights allowed under a Delaware law if the $24.4 billion leveraged buyout offer made by CEO Michael Dell and Silver Lake was approved.  That right allows shareholders to ask a judge to determine if the valuation of the company if they oppose a merger or other deal.