In an open letter sent to Dell shareholders on Tuesday, billionaire Carl Icahn stated that he is pledging to buy back the shares for Dell Inc. In a phone interview, Icahn reiterated his interest in owning Dell and announced that he has put together US$5.2 billion in financing to back his bid for the computer maker company.
In the next couple of weeks, Icahn is expecting to have US$5.2 billion worth of financing. He stated that the investment bank has already committed US$1.6 billion. He also added that he and his affiliates would provide another US$2 billion if needed.
On May 9, Icahn proposed a recapitalization for Dell Inc. to its shareholders. However, reports came out that he was struggling to come up with US$5.2 billion. On the contrary, Carl Icahn sent out a letter for the company's shareholders indicating his proposal and stating he is not exiting from the Dell race.
Last May, Icahn had discussion with banks and asset managers to back up the proposed leveraging of Dell's recapitalization. The move headed by Icahn was an alternative to an existing buyout offer led by Michael Dell and Silver Lake Partners. Jefferies & Co also committed US$1.6 billion and is leading the deal.
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