Carl Icahn, owner of 8.7% in Dell Inc (NASDAQ:DELL), plans to make his offer for the PC manufacturer “vastly superior” to the $13.65-per-share (€10.47) bid that has already been agreed with the company’s founder and CEO, he said in an interview on Bloomberg TV.
The activist investor, who tries to prevent Michael Dell and Silver Lake Management LLC from buying out and delisting the company, intends to add a warrant to his own $14.00-a-share bid, also including an alternative option to retain equity. This warrant is exchangeable for more shares in the event that Dell climbs to some $20.00.
This would mark the fourth attempt by Icahn to force Michael Dell to increase his $24.4bn buyout offer. The investor also urged other stockholders to seek a court appraisal of their stock, a move he describes as a “no-brainer”. At the same time, the special committee of Dell’s board noted such a process involves substantial risks and costs.
US proxy advisory firms Institutional Shareholder Services (ISS), Glass Lewis & Co and Egan-Jones all recommend that Dell’s stockholders approve the deal at their meeting scheduled for 18 July.