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TheStreet Open House

Carl Icahn Hunts for Dell Cash In Takeover War

Stocks in this article: DELL HPQ BX IEP

On Wednesday, Dell defended the proposed take-private deal and outlined why it thinks the bidding process has so-far served shareholder interests.

A special committee of independent directors set up to weigh the company's options defended its decision in a statement released early on Wednesday.

"The Special Committee unanimously determined that the sale of the Company would be the best alternative for stockholders," it said. "We negotiated aggressively to ensure that stockholders received the best possible value and agreed to a $13.65 per share transaction that provides value certainty at a 37% premium above the average price for the 90 days before rumors regarding the transaction surfaced."

Boutique investment bank Evercore Partners is currently helping the company with a 'go-shop,' in pursuit of a higher-priced bid.

Bloomberg reports that Blackstone and HP are both studying Dell's books as part of the Evercore-led process.

In agreeing to the $13.65 a share offer, Dell said it considered alternatives including continuing with, or modifying, the company's existing business plan, conducting a leveraged recapitalization, changing the company's dividend policy, and potentially selling all or parts of the business.

Still, Dell's board moved forward with the proposed $13.65 a share bid because it was deemed to be the company's best option.

-- Written by Antoine Gara in New York

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