Posted March 20, 2013 by Sarah Smith in Technology

Icahn Eyes Dell Notebooks despite Shareholder’s Opposition

Icahn Eyes Dell Notebooks despite Shareholder’s Opposition
Icahn Eyes Dell Notebooks despite Shareholder’s Opposition

Carl Icahn, the billionaire is considering Dell Inc, notebooks as he gears up to take forward alternatives for his proposed leverage purchase in the industry of personal computer worth $24.4 billion, despite facing opposition from investors and shareholders.

According to the statement that is signed in secret with Dell, Icahn, who is determined to invest in the stocks of Dell, is urging the organization to pay some exceptional dividend of $9 per share. However no additional details have been disclosed in relation to this agreement and contract. A spokesman of Dell, David Frink also refused to speak on this issue apart from the public declaration that is made in the official report. None of the other representatives of Icahn agreed to speak on any agreement or request to comment related to this issue.

It is observed that the board of Dell is asking for higher bid value than the $13.65 per share which is offered by Michael Dell (The Chief Executive Officer) and the associates of Silver Lake Management LLC. The agreement will need the approval of majority of shareholders or investors of the concerned company, exclusive of the CEO of Dell, i.e. Michael Dell. However, this proposition has been opposed and declined by the shareholders, which include T. Rowe Price Group Inc. and Southeastern Asset Management Inc. who state that the price offered undervalues the worth of the company.

The secret signing of agreement of Icahn shows that he is determined to stay with his view of being involved with financial transaction, unless he gets guaranteed profit, says Anthony Michael Sabino, the professor at the University of John’s. It is estimated that Icahn may try his personal turnover support or opt for third party assistance.

Michael Sabino declared in an interview that this will open up lots of opportunities and possibilities as Dell is now at its most playful mood. In an interview held last week, Icahn told that he has asked the Dell’s board to consider his proposal of dividend in case the investors and stockholders rejects the offer forwarded by CEO Dell. He also states that else he will start an alternative proxy fight and opt for replacement of directors at Round Rock with his own team, a company that is based at Texas.

Dell in a last week statement said that Icahn as well as other parties are welcome to participate in the process of seeking higher bids, which starts from March 22 of this year. According to research and review of Erik Gordon, the professor of law and business at Stephen M. Ross School of Business at Michigan, “Icahn is more close to making a deal with Dell; and it wouldn’t cost CEO Dell a fortune to raise his share bids slightly to get the support of giant investors.”

Sarah Smith

Sarah Smith a native of Chicago, Sarah received a masters in broadcast journalism from the Medill School of Journalism at Northwestern University. She also graduated Summa Cum Laude from Loyola University-Chicago. Sarah's work has been recognized by the Rhode Island Press Association, the National Association of Black Journalists and the Hugh M. Hefner First Amendment Foundation.