1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Monica Wolfe
Monica Wolfe
Articles (757) 

Icahn to Increase His Offer for Dell

July 12, 2013 | About:

The feisty and brilliant billionaire investor Carl Icahn is preparing his next move in the heated battle for Dell (DELL) between the CEO and founder, Michael Dell, and himself. The guru is preparing a higher bid for the computer-making company days before a crucial shareholder meeting. This shareholder meeting will essentially decide whether it's Dell or Icahn that gains control of the company.

Icahn told Bloomberg TV in an interview that he is planning a higher bid that will include a warrant by Friday (July 12) morning.

Carl Icahn alongside Mason Hawkins’ Southeastern Asset Management recently proposed an offer that would award shareholders to tender 1.1 billion shares at $14 per share. This, of course, one-upped Michael Dell’s and Silver Lake’s buyout offer of $13.65 per share.

Icahn also told Bloomberg, “We think the warrant will be around $20, to buy the stock at $20, and we’re going to give the shareholders a piece of that warrant.”

Carl Icahn has said repeatedly that he believes Michael Dell is significantly undervaluing the company with his offer. The company’s special board committee initially recommended Michael Dell’s offer to its shareholders.

Icahn has also said numerous times that a company’s founder should not be running their company after it has matured.

Ultimately, unless Dell’s special board changes its recommendation, any other proposal or offer from Icahn and Southeastern will not go to the shareholders unless they reject Dell’s and Silver Lake’s offer at the shareholder meeting on July 18.

Rating: 4.3/5 (3 votes)


Please leave your comment:

Performances of the stocks mentioned by Monica Wolfe

User Generated Screeners

cyarmeytop holding f scores 2
cyarmeytop holding f scores
rael2222TOP TOP 3
Saab HoldingsSaab other
ky_chuiProfile 1
mjspencermmm screen
browntroutFwd PE <=9, Gross Margin >= 25
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat