Icahn, Southeastern Mull Potential Dell CEOs

Jun 10 2013 | 10:10am ET

Carl Icahn is planning for Dell Inc.'s future without its founder and CEO, Michael Dell.

Icahn and his partner, Southeastern Asset Management, are locked in a battle over Dell's future with Michael Dell and his partners, led by private-equity firm Silver Lake Partners. The latter have proposed a $24.4 billion buyout to take Dell private, an offer accepted by Dell's board. The former call that deal "the great giveaway" and have suggested a leveraged recapitalization instead.

Icahn and Southeastern still have a long way to go to make that recapitalization a reality, starting with the defeat of the Michael Dell-Silver Lake deal in a shareholder vote next month, followed by a successful proxy battle to replace Dell's board of directors. But Icahn and Southeastern are already mulling who would lead a Dell under their control.

The two are putting together a shortlist of potential CEOs to replace Dell. Among the names to make the cut are Cisco Systems board member Michael Capellas, former IBM executive Michael Daniels, Oracle Corp. President Michael Hurd and Hewlett-Packard's personal-computer chief, Todd Bradley, Reuters reports.

Dell has called the Icahn-Southeastern deal "unrealistic" and claims it has a $3.9 billion funding gap. But several large Dell investors are siding with the two, including T. Rowe Price and Yacktman Asset Management.

"We are going to vote against the Silver Lake deal," Don Yacktman said. "Southeastern and Icahn make a strong case to go the other way."


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.