Icahn Drops Dell Bid, May Seek Board Seats

May 8 2013 | 8:50am ET

Carl Icahn has given up on his own bid for Dell Inc., but he hasn't given up his effort to thwart the company's only remaining offer.

Icahn and Southeastern Asset Management, one of Dell's largest shareholders, may jointly nominate a slate of candidates for the company's board in an effort to sink the $24.4 billion buyout of Dell by founder Michael Dell and private equity firm Silver Lake Partners. The two investors believe that the deal undervalues the company.

Icahn had made a preliminary offer for Dell that he said was richer and would allow part of the company to remain public. But he has given up on taking control of Dell by buying a majority stake, The Wall Street Journal reports, favoring a takeover through the boardroom.

That move leaves Dell with only the Silver Lake offer; the Blackstone Group, which had made a preliminary bid itself, dropped out of the running last month.

Icahn and Southeastern have until next week to nominate candidates. But their effort could be for naught: According to the Journal, a shareholder vote on the buyout is likely to precede a vote on the board.

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