The special committee of Dell Inc’s (NASDAQ:DELL) board confirmed that two of the US personal computer (PC) maker’s largest stockholders, Carl Icahn and Southeastern Asset Management Inc, had made a non-binding proposal for a potential leveraged recapitalisation.
Icahn and Southeastern are trying to prevent founder and CEO Michael Dell from buying out and delisting the PC company in partnership with private equity firm Silver Lake Partners for $13.65 (€10.53) per share, or a total of $24.4bn.
The opposing party has offered an alternative that would provide stockholders with the chance to retain their stock and also receive $12.00 apiece in cash. Based on Reuters calculations, the cash portion of their offer comes at $21bn. Icahn and Southeastern have also proposed to replace Dell’s existing board. The investor said in an interview with CNBC on Friday that Michael Dell would not run the company any more if this slate of new directors is elected.
In its statement, the special committee of Dell’s board said it is reviewing the new offer in an effort to assess the potential risks and rewards to public shareholders.
US buyout firm Blackstone Group LP (NYSE:BX) has already abandoned its own rival bid of over $14.25 a share in cash or stock for Dell, due to a record 14% drop in PC volume in the first quarter and the worsening financial profile of the target.