BILLIONAIRE investor Carl Icahn last night asked for a meeting with Dell special board committee after lining up $5.2bn (£3.4bn) in loan commitments backing his takeover plans for the PC manufacturer.
In an open letter to Dell shareholders, Icahn said that financing commitments included $1.6bn from Jefferies.
Dell responded, saying it “will be pleased to review any additional information, including financing commitments, that it may receive from him [Icahn] regarding his recapitalisation proposal.”
Icahn’s open letter said that the funding arrangement “puts an end to the unwarranted speculation by Dell that our money would not be available.” Rather than committing to a full takeover, Icahn is offering shareholders the choice of selling their shares – at $14 per share compared to the $13.65 Michael Dell is offering – but his offer requires some shareholders to roll over their stake and retain equity.
A Dell committee had rejected Icahn’s offer ahead of an 18 July vote on Michael Dell’s bid, saying that there were big funding gaps.
City A.M. Reporter