Del;l Discussion
Carl Icahn Pushes Dell To Offer $9 Special Dividend
March 7, 2013
By Michelle Jones
Activist investor Carl Icahn is not only stepping into the debate over Dell Inc. (DELL)’s leveraged buyout. He’s also pushing for a $9 per share special dividend and offering loans to help the company with a leveraged recapitalization. He also wants Dell to add a vote to its annual shareholder meeting, allowing them to choose between his proposal and the go-private deal being offered by founder Michael Dell. If the company doesn’t, he threatens “years of litigation.” inShare0 Dell Inc. (NASDAQ:DELL)’s proposed leveraged buyout deal just keeps sinking further and further. On Wednesday we reported that activist investor Carl Icahn was stepping into the fray. Today we not only have confirmation of that, but also signs that Icahn is going “all-in” and planning to do whatever it takes to stop that buyout from happening.
The Wall Street Journal reports that Dell Inc. (NASDAQ:DELL) released a letter this morning indicating that Icahn is pushing the company to offer a special $9 per share dividend rather than the $24.4 billion leveraged buyout the company’s special committee has recommended. He wants the PC maker to offer that dividend if the shareholder vote on the leveraged buyout fails. In addition, the letter apparently threatens Dell with “years of litigation” if the company doesn’t add a vote on the deal to its annual shareholder meeting.
Carl Icahn said he would nominate a group of directors who would implement his proposal for a dividend and leveraged recapitalization so that shareholders could choose between his proposal and the buyout being led by founder Michael Dell.
He also gave details on how the special dividend could be funded. He said $4.26 per share could come from the company’s available cash, while $1.73 per share could come from factoring the company’s existing receivables. The remaining $4.26 per share would be in new debt.
According to Carl Icahn, if the
March 7, 2013
By Michelle Jones
Activist investor Carl Icahn is not only stepping into the debate over Dell Inc. (DELL)’s leveraged buyout. He’s also pushing for a $9 per share special dividend and offering loans to help the company with a leveraged recapitalization. He also wants Dell to add a vote to its annual shareholder meeting, allowing them to choose between his proposal and the go-private deal being offered by founder Michael Dell. If the company doesn’t, he threatens “years of litigation.” inShare0 Dell Inc. (NASDAQ:DELL)’s proposed leveraged buyout deal just keeps sinking further and further. On Wednesday we reported that activist investor Carl Icahn was stepping into the fray. Today we not only have confirmation of that, but also signs that Icahn is going “all-in” and planning to do whatever it takes to stop that buyout from happening.
The Wall Street Journal reports that Dell Inc. (NASDAQ:DELL) released a letter this morning indicating that Icahn is pushing the company to offer a special $9 per share dividend rather than the $24.4 billion leveraged buyout the company’s special committee has recommended. He wants the PC maker to offer that dividend if the shareholder vote on the leveraged buyout fails. In addition, the letter apparently threatens Dell with “years of litigation” if the company doesn’t add a vote on the deal to its annual shareholder meeting.
Carl Icahn said he would nominate a group of directors who would implement his proposal for a dividend and leveraged recapitalization so that shareholders could choose between his proposal and the buyout being led by founder Michael Dell.
He also gave details on how the special dividend could be funded. He said $4.26 per share could come from the company’s available cash, while $1.73 per share could come from factoring the company’s existing receivables. The remaining $4.26 per share would be in new debt.
According to Carl Icahn, if the