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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

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