Icahn backs sweeter Dell counterproposal

Published on NewsOK Modified: July 12, 2013 at 6:08 pm •  Published: July 12, 2013
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NEW YORK (AP) — Billionaire investor Carl Icahn is proposing that Dell shareholders get a chance to own a bigger stake in the struggling computer maker in hopes of thwarting an attempt by the company's founder to buy it for $24.4 billion and take it private.

Icahn, who owns a nearly 9 percent stake in Dell, now wants shareholders to receive warrants in addition to the cash he previously recommended be given to shareholders.

Icahn previously proposed that Dell "self-tender" 1.1 billion shares of its stock for $14 per share. His revised proposal adds one warrant for every four shares. The warrant would give shareholders the right to buy one Dell share for $20 over the next seven years. Dell's shares haven't traded above $20 since September 2008.

In a letter to shareholders, Icahn values his counterproposal at about $15.50 to $18 per share.

Meanwhile, Michael Dell and Silver Lake Partners have offered to buy the entire company for $13.65 per share. Shareholders are set to vote on that offer at a meeting Thursday.

But Icahn argues that Michael Dell's offer undervalues the company and earlier this week asked a judge to assess its fairness.

The activist investor has proposed a variety of alternatives to keep the company publicly traded, but none have swayed the board from its support of the deal with Michael Dell and Silver Lake. What's more, Dell's board says its representatives contacted more than 70 potential suitors without finding any willing to ante up more than $24.4 billion.



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