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Canadian Value
Canadian Value
Articles (4564) 

Carl Icahn Walks Us Through His Offer to Acquire Dell

May 10, 2013 | About:


Icahn thinks that the Michael Dell offer for Dell (NASDAQ:DELL) that the board of directors has approved is a great giveaway. Instead he and Southeastern Asset Management are proposing a leveraged recapitalization.

Icahn's offer involves shareholders getting $12.65 per share in cash and a share in the recapitalized Dell which will earn $0.89 in the first year (according to Icahn).

If you put a 10 multiple on that $0.89 the recapitalized Dell could trade for over $8.

In the interview below Icahn discusses the Dell takeover, Herbalife and Jim Chanos who has a short position in Dell.



About the author:

Canadian Value
http://valueinvestorcanada.blogspot.com/

Rating: 4.0/5 (4 votes)

Comments

kfh227
Kfh227 premium member - 2 years ago
I wish they asked him about the recent BBRY rumors that say he is accumulating.

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