Tuesday, 25 October 2016
Last updated 17 hours ago
Oct 7 2013 | 9:44am ET
Carl Icahn will end his battle to block Dell Inc.'s sale to its founder and a private-equity firm with one arrow left in his quiver.
Icahn said in a Twitter post that he would not seek appraisal rights for his 156.5 million Dell shares. The billionaire abandoned his fight to block the Dell buyout last month, but still vowed to seek appraisal rights, allowed under Delaware corporate law, which could have forced Michael Dell and Silver Lake Partners to pay more than that $13.88 per share agreed under the deal. Icahn had also urged other shareholders to do so, arguing that the $24.8 billion buyout "greatly undervalues" the computer-maker.
On Friday, however, Icahn told his Twitter followers that he "withdrew his demand for appraisal," writing "we believe we have better uses for $2 billion." Icahn will receive $2.2 billion under the Dell deal, which was approved by shareholders last month.
According to Bloomberg News, Dell received appraisal requests for 225 million shares, including Icahn, leaving some 68.5 million shares still proceeding with the process. It is unclear whether Icahn's decision will affect the plans of those shareholders.