Carl Icahn has joined calls for Dell to pay a special dividend totaling $15.7 billion together with opposition to the plan proposed by Michael Dell. In a letter to the board, Icahn recommended leveraged recapitalization. He strongly pointed out that the company was substantially undervalued in the $24.4 billion go-private deal proposed.
The presence of Icahn normally puts companies and their boards on the defensive. The forthright billionaire is known for his forceful demands for the modifications management policy by increasing the stakes. A number of shareholders have aired their own disapproval on the deal which led Dell to present other alternative offers to convince Icahn and the other holders otherwise.
According to Michael Dell, Icahn requested its board to support his proposal to "avoid a proxy fight". On the other hand Icahn wrote, "We see no reason that the future value of Dell should not accrue to ALL the existing Dell shareholders - not just Michael Dell."
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