Dell Inc said shareholder Carl Icahn has urged the company to pursue a leveraged recapitalization and pay a $9 per share dividend instead of going private.<\/p>\n
Dell founder and CEO Michael Dell has struck a deal to take the No. 3 personal computer maker private in a $24.4 billion deal that is being opposed by some of the company’s major shareholders.<\/p>\n
Icahn, known for shaking up management in the companies in which he invests, said in a letter to the Dell board that his interests hold a substantial stake in Dell but did not disclose his exact shareholding.<\/p>\n
CNBC, citing sources, reported on Wednesday that Icahn had accumulated about 6 percent of Dell’s shares. That would make him the next largest shareholder after Southeastern Asset Management and Michael Dell, based on previously available data.<\/p>\n
Southeastern Asset Management also opposes the deal.<\/p>\n
Dell said Icahn had asked its board to commit to his proposal, in case the go-private deal is voted down by shareholders, to “avoid a proxy fight”.<\/p>\n
Dell said it would welcome Icahn to join a “go-shop” process announced on Wednesday.<\/p>\n
Icahn warned that if his proposal was not accepted he would run a slate of directors that, if elected, would implement it.<\/p>\n
Icahn Enterprises LP would provide a $2 billion bridge loan for the “prompt payment” of the dividend, if his slate of directors was elected, he said in the letter.<\/p>\n
Icahn himself would provide an additional $3.25 billion bridge loan to Dell if necessary.<\/p>\n
Dell shares were marginally higher before the bell.<\/p>\n
Restoring Dell to its former glory<\/strong><\/a><\/p>\n