logo
Share SHARE
FONT-SIZE Plus   Neg

Dell Special Committee Urges Stockholders To Reject Icahn's Proposal

A Special Committee of the Board of Dell Inc. (DELL: Quote) Tuesday recommended its shareholders to reject Carl Icahn's proposal for a $15.6 billion self-tender by the company at $14 per share.

"Based on analyses prepared by our advisors and our own view of the business, we do not believe that Icahn's proposal is superior to the certainty of value offered by a sale of the entire Company at $13.65 per share, " said the committee.

The committee believes that it is unwise to layer substantial financial risk on a company already facing significant challenges from competition and from the rapid pace of technological change.

As a private company controlled by Dell and Silver Lake, the company will have a significant debt burden, the risks of that capital structure will be borne entirely by the buyers and not by the public stockholders.

According to the committee, Icahn's proposal does not provide the basis for it to change its recommendation. The Board could independently resolve to consummate various leveraged recapitalization transactions.

The company also warned its shareholders of Icahn's campaign to discredit the Special Committee and accuse it of frightening Dell stockholders, and has urged the stockholders to base their decision on the facts without being misled by Icahn's self-serving accusations.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
We are just a few weeks into 2015 and it has already been a busy year for merger deals and merger talks. Here is a list of some of the M&A stories that have made headlines so far in 2015. Diversified electronics maker TE Connectivity Ltd. is nearing a deal to sell its network solutions business unit to CommScope Holding Co., Inc. (COMM) in a deal valued at about $3 billion, according a Wall Street Journal report on Monday. A deal could be announced as early as this week. There has... The video game industry waltzed through 2014 with a record $24 billion in acquisitions and IPOs, says advisory firm Digi-Capital. The frenzied activity in the industry came as companies vied to get hold of game titles that could tilt the scale in their favor, and the need to shore up investment in infrastructure and marketing.
comments powered by Disqus
Follow RTT