FONT-SIZE Plus   Neg

Dell Special Committee Says It Will Review Carl Icahn's Latest Proposal

The Special Committee of the Board of Dell Inc. (DELL) Friday said it is reviewing the latest proposal put forward by Carl Icahn, regarding issuance of warrants in connection with the self-tender proposal he previously outlined.

According to the committee Icahn's various proposals are risky for the buyer as it requires abandoning an all cash transaction at a substantial premium with a high degree of closing certainty.

The committee stated, "We are working with our advisors to evaluate whatever benefits might flow to shareholders from the warrant he has proposed to include in his structure. "

We would note that a portion of any value attributed to the warrants would be offset by a reduction in the value of the recipients' stub equity, as well as the fact that receipt of the warrant would likely be a taxable event.

Meanwhile, the committee has also reminded its shareholders to make payment of $13.65 per share in cash or bear the risks of continuing to hold their Dell shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
European Court of Justice in Luxembourg has canceled the international agreement between European Union and United States to handover digital information, such as web search histories and social media updates. The ruling will be a blow to tech giants Google, Microsoft, Facebook, Amazon, etc. Volkswagen Australia Wednesday confirmed that more than 91 thousand vehicles sold in Australia were fitted with emission cheating software. Volkswagen brand alone comes to 77,000 cars and 14,000 cars are Audis. In what could be a delectable offering, something is cooking in the brewing industry. Belgian brewer Anheuser-Busch Inbev, which in itself is an outcome of many mergers in the past, has made advances to U.K.'s SABMiller. If AB InBev succeeds in its pursuit, the heady combination of the two could create one of the world's largest brewers.
comments powered by Disqus
Follow RTT