Quick Facts
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

Dell Special Committee Urges Stockholders To Reject Icahn's Proposal

RELATED NEWS
Trade DELL now with 
7/16/2013 5:47 PM ET

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.

Register
To receive FREE breaking news email alerts for Dell Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Chipmaker Advanced Micro Devices Inc. said Thursday after the markets closed that its first quarter loss narrowed from last year, helped by strong revenue growth in its graphics and visual solutions business. The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue. After trending higher over the past few sessions, stocks showed a lack of direction throughout the trading day on Thursday. The major averages spent the session bouncing back and forth across the unchanged line before ending the day mixed. While the major averages closed on opposite sides of the unchanged line, they all showed only modest moves. U.S. Secretary Of State John Kerry said Thursday that he and his counterparts from Russia, Ukraine and the European Union have reached an agreement on a preliminary plan for ending the ongoing crisis in Ukraine. Kerry was speaking at the end of the Ukraine contact group's first meeting, comprising the foreign ministers of Russia, Ukraine, the EU and the U.S., in the Swiss city of Geneva.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.