Icahn offers rival Dell deal

(Source: Reuters)

Activist investor Carl Icahn has proposed an alternative to Michael Dell's proposed $24.4bn buyout of tech giant Dell. Icahn and Southeastern Asset Management issued a letter to Dell's board saying that Michael Dell's offer was:

Insulting to shareholders' intelligence for the board to tell them that this board only has the best interests of shareholders at heart.

Our technology reporter James Titcomb on an agreement made between Icahn and Dell on 16 April:

A special bid committee, set up to oversee rival offers between the various parties vying for control of Dell, said yesterday that Icahn had agreed not to take his stake above 10 per cent.

In return, he will be able to team up with other bidders, such as private equity firm Blackstone, over an offer that would rival chief executive Michael Dell’s $24.4bn (£15.9bn) bid to take Dell private.

Blackstone and Icahn have both been critical of Michael Dell’s offer, claiming it significantly undervalues the PC maker. Both have tabled non-binding proposals that value the firm at higher than $24.4bn and yesterday’s developments could improve the prospect of an actual bid.

(Full article)