Two of Dell's largest shareholders, namely Southeastern Asset Management and billionaire Carl C. Icahn, is now planning to make a formal bid for the beleaguered computer manufacturer. It is also seeking to challenge the takeover bid of Silver Lake Partners and founder Michael Dell, which they call as 'the great giveaway.'
The bid interest was communicated through a letter to the board of directors of Dell Corp. It is intended to be a last ditch stand against the leveraged buyout proposal led by Michael Dell, the company's current CEO and founder with hedge fund firm Silver Lake Partners.
The offer by Icahn-Southeastern is said to be at US$12 per share in either cash or additional shares and it leaves a portion of Dell shares in the public trading market. The Dell-Silver Lake bid offers US$13.65 cash per share.
The two investors have also threatened a protracted proxy fight should the special committee of the Dell's board of directors should they not refuse the Dell-Silver Lake offer. This comes after the savage criticisms that the new bidders have made on the Dell-Silver Lake bid, calling it 'inadequate' and has the effect of 'shortchanging other shareholders.'
Join the Conversation