Icahn, Southeastern Push 'No' Vote On Dell Deal

Jun 26 2013 | 12:21pm ET

Carl Icahn and Southeastern Asset Management today sent Dell Inc. shareholders the proxy materials and urged them to vote against the $24.4 billion buyout led by company founder Michael Dell and private-equity firm Silver Lake Partners.

In an accompanying letter, Icahn and Southeastern write that Michael Dell could earn a 50.1% rate of return, and Silver Lake a 44.7% return, over the next four to five years if the buyout is approved.

"Icahn and Southeastern believe the board of directors of Dell should have acted to secure those gains for stockholders," they wrote.

"Icahn and Southeastern believe the board could have done more - much more - to afford stockholders an opportunity to achieve the very same gains now pursued by Michael Dell and Silver Lake.  However, Dell instead appears to be engaging in a campaign to highlight Dell's bleak outlook in the PC market, obscuring the robust performance and future of the ~$13 billion in acquisitions Dell has made in recent years, which were paid for by Dell's current owners. Icahn and Southeastern believe that Dell is conducting this campaign to prompt stockholders into supporting what Icahn and Southeastern believe is a bad deal for stockholders and a very good deal for Michael Dell and Silver Lake."

Dell has said that it cannot make the changes it needs to under scrutiny as a public company, changes that could be made if it goes private.

Yesterday, Icahn also fired back at Dell's allegations that his own plan for a $16 billion share buyback program is short of funding and is "desperate."

Shareholders have until July 18 to vote.


In Depth

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

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.