Billionaire investor Carl Icahn is seeking to put a monkeywrench into the proposed buyout of Dell Corp by the consortium led by founder and CEO Michael Dell and Silver Lake Partners. He now comes to fellow investors to make a big bet on the computer maker despite the rising competition, declining demand and increased debt load.
The deal offered by Icahn would retain the publicly traded shares of Dell in the market. It would also include US$12 per share to paid out in cash or Dell stock equivalent. The payout would dilute existing Dell shares, which Icahsn said woud be valued at US$1.65 per share. On the other hand, the offer from Michael Dell and Silver Lake is at US$13.65 per share in cash.
What is seen by many industry analysts is that under Icahn's plan, investors seeking to retain their shares would face greater risk, While the shareholder would receive US$12 per share, there would be no guarantee that a buyer may come down the road willing to pay at least US$1.65 per share, which is a prospect that the Dell-Silver Lake offer covers quite completely.
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