Billionaire investor Carl Icahn plans to seek a higher price for his Dell shares in court and urged other investors to do the same, in an effort to block Dell Inc founder Michael Dell’s $24.4 billion buyout offer ahead of a key shareholder meeting.<\/p>\n
Icahn opposes the proposal from Michael Dell and private equity firm Silver Lake, arguing it undervalues the PC maker, and has put forth a number of alternative options in concert with fellow Dell shareholder Southeastern Asset Management.<\/p>\n
Earlier this week, however, shareholder advisory firms Institutional Shareholder Services, Glass Lewis and Egan Jones threw their support behind Michael Dell’s offer.<\/p>\n
In his latest effort to derail Michael Dell’s plans, Icahn wants shareholders to vote against the buyout and then ask a court in Delaware, where Dell is incorporated, to appraise the fair value of the shares.<\/p>\n
“We believe if you seek appraisal, you will receive more,” Icahn said in a letter to Dell shareholders.<\/p>\n
Icahn said Dell shareholders could change their minds about the appraisal up to 60 days after the merger.<\/p>\n
During that time “we believe Dell may wish to negotiate with those that sought appraisal and possibly pay a premium over $13.65 to get them to settle and drop their appraisal claims,” he said.<\/p>\n
Should shareholders change their minds they can still sell for $13.65, Icahn said in the letter, adding “you can have your cake and eat it too.”<\/p>\n
Dell shareholders are scheduled to vote on the buyout offer proposed by Michael Dell and Silver Lake on July 18.<\/p>\n
On Tuesday, Yacktman Asset Management, which owns about 0.85 percent of Dell stock, said it favored Icahn and Southeastern’s proposal that would see shareholders tender 1.1 billion shares at $14 each.<\/p>\n
For that bid to be put to a vote, shareholders must reject Michael Dell’s proposal and then elect a new slate of directors put up by Icahn.<\/p>\n
Icahn and Southeastern together own almost 13 percent of Dell’s stock.<\/p>\n
Icahn promises $16 billion buy-back of Dell stock<\/a><\/strong><\/p>\n Icahn short on cash for Dell proposal: committee<\/strong><\/a><\/p>\n Dell presented with more alternatives to buyout<\/a><\/strong><\/p>\n