This Day On The Street
Continue to site
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

Michael Dell and Carl Icahn Showdown Not About Checkbooks

Still, such a scenario might be a disappointing conclusion to Dell's multi-decade run in public stock markets. Dell has spent recent years collecting billions in fast growing services businesses and its offshore bank account has accumulated billions more given the PC-maker's reluctance to invest heavily on mobile devices like tablets.

The cash flow of Dell's PC business and the value of its services business give the company a real prospect of joining the likes of turnarounds such as IBM (IBM), Xerox (XRX - Get Report) and even Hewlett-Packard (HPQ - Get Report) under CEO Meg Whitman's leadership, as Icahn noted in a recent presentation.

Corporate turnarounds, despite uncertainty and the frequency of failure, are one of the hallmarks of American capitalism. They often prove an alignment of incentives between Wall Street and corporate boards can make businesses nimble, better run and more entrepreneurial.

Unfortunately, Dell's takeover drama may end not as a referendum on the company's prospects in new strategy, but instead a short-term focus on price and financial engineering. If Dell gets bought at $13.65 a share, $14 a share or $15 a share, it will not be a turnaround.

Carl Icahn still has articulated a better vision for Dell as a corporate turnaround, even if it likely won't take much of a price increase for the Michael Dell and Silver Lake consortium to win over skeptical shareholders.

-- Written by Antoine Gara in New York.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
DELL $0.00 0.00%
AAPL $128.70 -0.19%
HPQ $33.65 -0.44%
MSI $60.68 0.66%
XRX $11.77 2.17%

Markets

DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs