Dell Responds to Offer Of Icahn and Southeastern

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On Friday, Dell Inc. issued its reply on the suggested alternative presented by Southeastern Asset Management and Carl Icahn. The presented alternative suggested a US$24.4 billion takeover agreement headed by Dell founder, Michael Dell.

The letter given to Dell's board on Thursday by Southeastern and Icahn offered that the present owners keep their equity position plus they are given the option of being paid a distribution of a cash US$12 per share or may opt to have a US$12 per share in stock with value of US$1.65 per share according to a news report of Reuters

Today, The Special Committee of the Board of Dell Inc released the succeeding statements concerning a non-binding proposal it obtained from Southeastern Asset Management and Carl Icahn. The statement read, "Mr. Icahn and Southeastern have outlined a potential leveraged recapitalization transaction that they want the Dell Board either to recommend at this time or to consider if the existing going-private transaction is rejected by Dell shareholders. They have also proposed replacing the Board with a slate of new directors who they say would approve such a transaction. Consistent with the Special Committee's goal of achieving the best possible outcome for all shareholders, we and our advisors are carefully reviewing the potential transaction to assess the potential risks and rewards to the public shareholders."

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Carl Icahn, Southeastern Asset Management

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