Dell rejects Icahn proposal to back Silver Lake and Michael Dell takeover deal

Technology giant Dell, which has been at the center of a storm of proposed takeovers, has rejected a proposal by activist investor Carl Icahn and Southeastern via a statement from its special committee.

Instead the special committee has backed a takeover bid proposed by Dell founder Michael Dell and silver Lake.

The Board believes the $13.65 per share cash sale to Silver Lake and Michael Dell is the best option for shareholders.

[There is a] significant liquidity gap in the recapitalization proposed by Icahn/Southeastern that could reduce the promised $12.00 per share special dividend to $9.35 per share -- and to $8.50 per share if Icahn/Southeastern are the only shareholders electing the equity stub instead of cash.