Arab Today, arab today icahn revamps dell offer calls buyout \giveaway\
Last Updated : GMT 05:55:37
Arab Today, arab today
Arab Today, arab today

Icahn revamps Dell offer, calls buyout \'giveaway\'

Arab Today, arab today

Arab Today, arab today Icahn revamps Dell offer, calls buyout \'giveaway\'

New York - AFP

A battle for US computer giant Dell heated up Friday as corporate raider Carl Icahn and other investors made a new offer and called a planned buyout led by company founder Michael Dell a \"giveaway.\" The investor group, which holds around 13 percent of Dell shares, said in a regulatory filing it would urge shareholders to reject the private equity buyout and opt instead for its \"superior\" recapitalization plan, keeping the company public. Icahn has allied with Southeastern Asset Management to block plans announced this year and led by Michael Dell, with the investment fund Silver Lake Partners, to take Dell private in a $24.4 billion -- or $13.65 a share -- buyout. Icahn, who initially offered $15 per share for up to 58 percent of Dell shares, unveiled the new plan, which would inject fresh capital and keep the company publicly traded in what is known as a leveraged recapitalization. The dissident investors would offer a new slate of directors if the current board refuses to back the plan. Under the Icahn plan, shareholders would get $12 a share, from Dell\'s cash and new debt, and retain their equity stake. Icahn, in a letter to shareholders also filed with the Securities and Exchange Commission, did not place a value on the offer, but said it \"is superior to the going private transaction.\" In unusually harsh language, the document called the buyout plan \"the great giveaway\" and \"insulting to shareholders\' intelligence.\" It said the buyout undervalues Dell and \"amazingly allows him to purchase the company from shareholders with their own money.\" \"It does not take a mathematician to understand that $12.00 in cash and a stub equity component with, as outlined in our view, significant upside operating potential, is superior to only $13.65 in cash,\" the document said. \"The going private transaction leaves all of the upside to Michael Dell and an opportunistic buyout group with only their own interests in mind.\" Icahn is known for hostile bids and efforts to take over companies he sees as undervalued. Dell\'s special committee evaluating offers said it would study the Icahn plan. \"Consistent with the special committee\'s goal of achieving the best possible outcome for all shareholders, we and our advisors are carefully reviewing the potential transaction to assess the potential risks and rewards to the public shareholders,\" a statement said. Rob Enderle, analyst with Enderle Group, said that \"investors don\'t like complex plans\" and argued that the Icahn \"could do more damage to Dell\'s valuation, crippling the company, than the payout would provide benefit.\" Enderle said going private appears a better option for Dell to revive its fortunes, and that the Icahn plan creates \"a very high risk that Dell would fail as a company.\" Dell shares rose 0.83 percent to close at $13.43. Dell unveiled plans to go private in February, giving founder Michael Dell a chance to reshape the former number one PC maker away from the spotlight of Wall Street. The move, which would delist the company from stock markets, could ease some pressure on Dell, which is cash-rich but has seen profits slump, as it tries to reduce dependence on the slumping market for personal computers. Under the terms of the deal, Michael Dell, who currently owns some 14 percent of Dell\'s common shares, would remain chairman and chief executive and boost his stake in the company. Additional cash for the deal would come from Silver Lake, a major tech investment group, and MSD Capital, a fund created to manage Michael Dell\'s investments. The plan also calls for a $2 billion loan from Microsoft. Another bid for Dell came from Blackstone Group, but was later withdrawn. The Dell special committee said in March the company faces a tough road ahead because of changes in the tech industry, with a shift away from PCs to mobile devices, and tough competition from other manufacturers. Michael Dell said in a memo last month he would \"invest for growth\" and compete aggressively in new markets if his plan to go private succeeds.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today icahn revamps dell offer calls buyout \giveaway\ Arab Today, arab today icahn revamps dell offer calls buyout \giveaway\

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today Dozens dead in US-led Syria strikes

GMT 08:35 2017 Thursday ,23 March

Dozens dead in US-led Syria strikes
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today MP submits a petition to dismiss university head

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Merna Waleed praises her work with Soad Hosni

GMT 07:03 2017 Wednesday ,22 March

Merna Waleed praises her work with Soad Hosni
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 07:12 2017 Tuesday ,21 March

Donia Abdel Aziz participates in "Game of Silence"

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 07:38 2017 Friday ,24 March

Pass health bill Friday or he'll move on

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday