logo
Share SHARE
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
An Illinois woman has filed a lawsuit against Starbucks accusing that the coffee retail giant is misleading customers by "underfilling" its cold beverages. According to the plaintiff, Starbucks is cheating customers by serving cold coffees with too much ice cubes and less coffee than advertised, "often... GNC Holdings Inc. (GNC) Monday said it has commenced a strategic review that could lead to potential sale of the company. Shares of GNC Holdings gained over 4 percent after the vitamins and health supplement retailer said it has hired Goldman Sachs and Wachtell, Lipton, Rosen & Katz to advise on... Workers at a giant construction company in Saudi Arabia have set fire to several company buses amid protests at being laid off and not being paid wages for several months. Employees at the Saudi Binladin Group set fire to company buses and staged demonstrations within the Mecca region in recent weeks after the company, one of Saudi Arabia's largest employers, laid off 50,000 foreign employees.
comments powered by Disqus
Follow RTT