Bloomberg: Icahn to sweeten buyback plan for Dell shares

by **Cals** Sun 14 Jul 2013, 03:55

Bloomberg: Icahn to sweeten buyback plan for Dell shares

First Published:10:01am, Jul 12, 2013
Last Updated:10:01am, Jul 12, 2013

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Carl Icahn is preparing a higher bid for computer maker Dell Inc ahead of a key shareholder meeting after proxy firms endorsed founder Michael Dell's US$24.4b buyout offer.

NEW YORK (July 12): Billionaire investor Carl Icahn is preparing a higher bid for computer maker Dell Inc ahead of a key shareholder meeting after proxy firms endorsed founder Michael Dell's US$24.4 billion (RM77.31 billion) buyout offer.

Ichan told Bloomberg TV that he will make a higher bid that will include a warrant by Friday morning.

Icahn, along with Southeastern Asset Management, had proposed an offer that would see shareholders tender 1.1 billion shares at US$14 apiece, rivalling Michael Dell's and Silver Lake's buyout offer of US$13.65 a share.

"We think the warrant will be around US$20, to buy the stock at US$20, and we're going to give the shareholders a piece of that warrant," he told Bloomberg.

The billionaire investor has said Michael Dell's offer substantially undervalues the company. Dell's special board committee had recommended Michael Dell's offer to shareholders.

Icahn said a founder should not be running the company "years later when it matures."

Unless Dell's special board changes its recommendation, any proposal from Icahn will be put to shareholders only if the offer by Michael Dell and Silver Lake is not accepted by shareholders when they meet on July 18.

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