Icahn Boosts Dell Stake

Aug 6 2013 | 1:08pm ET

Carl Icahn isn't giving up his fight to block the sale of Dell Inc. to its founder and a private-equity firm.

Icahn has bought up an addition four million shares of the computer-maker, boosting his stake in the company to 8.9%. The purchase makes him Dell's second-largest shareholder, after Michael Dell himself; Icahn is barred from owning 10% or more of the company.

Icahn bought the shares on Thursday, a day before Dell announced a richer deal with Michael Dell and Silver Lake Partners—one that is expected to be approved by Dell shareholders next month.

On the same day, Icahn filed suit against Dell to prevent it from changing the rules for voting on the buyout, which it did on Friday when it accepted the new offer, which will pay $13.75 per share—10 cents more than the original offer—and a special 13 cent per share dividend, on top of guaranteed dividends of 24 cents.

"An increase of a mere 13 cents is an insult to shareholders," Icahn said on Friday. He blasted the special committee handling the sale, accusing it of "improperly putting its thumb on the scales in favor of Mr. Dell's offer."

Icahn has proposed a share buyback plan that would pay investors $14 per share. But in order to effectuate it, he'll need to have the Dell-Silver Lake offer rejected and then take control of Dell's board at its next annual meeting.


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.