| Business

Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Icahn beefs up Dell counterproposal

Email Newsletters

Click here to sign up for one of our email newsletters.

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

DELL $13.32 -$0.03

at close on FRIDAY

By The Associated Press
Saturday, July 13, 2013, 12:01 a.m.

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.

Subscribe today! Click here for our subscription offers.



Show commenting policy

Most-Read Business Headlines

  1. Eat’n Park sells Cura division that serves hospitals and senior living
  2. ZeroFossil Energy Outfitters powers up with renewable sources
  3. Alcoa lands $1B airplane fastener contract from Airbus
  4. ATM fees soar as cash loses cachet
  5. Energy efficiency goes mainstream with help of regulations, demand
  6. Power plants challenged by carbon capture and storage
  7. Volkswagen’s California pollution test site under scrutiny amid cheating scandal
  8. PNC fined for paperwork errors on municipal bond offerings
  9. Market rises on bet that Federal Reserve won’t raise interest rates soon
  10. Calgon Carbon inks deals for mercury scrubbing at 9 power plants
  11. Dumped Twitter co-founder reclaims helm