Icahn beefs up Dell counterproposal

| 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.

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