Icahn to raise bid for Dell Inc.

By

Carl Icahn, the billionaire investor who strongly opposes Michael Dell's privatization takeover bid, prepared to offer a higher bid for Dell Inc. The plan was ahead of a key shareholder meeting. Icahn initiated the move after proxy companies endorsed Michael Dell's US$24.4 billion buyout deal.

By Friday morning, Icahn said that he would make a higher bid that will include a warrant. This was stated through an interview by Bloomberg TV.

Michael Dell offered the computer maker's shareholders US$13.65 per share piece. On the other hand, Icahn together with Southeastern Asset Management proposed US$14 per share piece. This would sum to a US$1.1 billion tender offer.

He told Bloomberg that the warrant would be around US$20 per share piece. Icahn added that he and Southeastern were going to give a piece of the warrant to the company's shareholders.

A special board committee recommended Michael Dell's offer to the company's shareholders. Meanwhile, Carl Icahn said the founder's offer substantially undervalued the computer maker.

Tags
Carl Icahn, Southeastern Asset Management, Dell Inc, Michael Dell

© 2024 VCPOST.com All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics