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

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…