Icahn thinks that the Michael Dell offer for Dell (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.