This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Icahn, Southeastern, Shift Dell Takeover Goal Posts (Update 1)

Stocks in this article: DELL BX IEP

Icahn and Southeastern Asset Management believe their proposal is a compelling alternative to a full takeover for Dell because it will dividend out Dell's cash and give investors continued upside in a possible turnaround of the PC-maker and burgeoning IT services specialist.

Icahn has called Silver Lake and Michael Dell's proposal for the world's third leading computer maker the "great giveaway."

To finance Friday's proposed $12-per-share payout, Icahn and Southeastern will use Dell's existing cash and $5.2 billion in new debt, which they point out pales in comparison to the $16 billion in debt Silver Lake's consortium has already arranged for a go-private. Icahn will obtain a bridge loan to guarantee his proposed financing.

"Evercore Partners, the investment banker Dell purportedly hired to euphemistically 'go shop' the company, has told Mr. Icahn on more than one occasion that the 'independent committee' has only one concern, and that is to do what is right for shareholders," Icahn wrote in a letter to Dell's board of directors. "Our proposal gives the Board a final chance to prove that what they say is correct. "

Dell shares were rising less than 1% in early Friday trading to $13.44 a share.

Shares currently sit below Silver Lake's proposed $13.65 a share offer and are well below prices that reached as high as $14.50 a share amid a takeover frenzy that's cooled.

-- Written by Antoine Gara

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs