Icahn beefs up Dell counterproposal
Billionaire investor Carl Icahn is proposing that Dell shareholders get a chance to own a bigger stake in the struggling computer maker in hopes of thwarting an attempt by the company's founder to buy it for $24.4 billion and take it private.
Icahn, who owns a nearly 9 percent stake in Dell, said he wants shareholders to receive warrants in addition to the cash he previously offered.
Under his revised offer, Dell would “self-tender” 1.1 billion shares of its stock for the originally proposed $14 per share, plus one warrant for every four of their shares. The warrant would give shareholders the right to buy one Dell share for $20 over the next seven years. Dell's shares haven't traded above $20 since September 2008.
In a letter to shareholders, Icahn values his counterproposal at about $15.50 to $18 per share. Meanwhile, Michael Dell and Silver Lake Partners have offered to buy the entire company for $13.65 per share. Shareholders are set to vote on that offer at a meeting Thursday.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Russian steel to lose duty shelter
- Rural communities can’t shake effects of subprime crisis
- Calgon Carbon poised for explosive growth
- CMU spinoff’s CEO gets council honors
- Market sell-off offers opening
- Chevron puts $20M into educating, training Appalachian workers
- Amid struggles, top fiscal executive to leave EDMC
- Stocks rally; S&P 500 has best day of 2014
- High pollution levels found near Ohio gas wells
- Natrona Bottling Co. keeps soda pop operation focused on craft, taste
- Allegheny Technologies reports $700,000 loss in 3Q