American business magnate Carl Icahn has signed a confidentiality agreement to review Dell‘s financial records and further evaluate the bid for a $24 billion leveraged buyout to take the company private.
With news circulating about Icahn’s involvement, Dell shares rose one percent this morning to $14.30.
The activist investor has sided with shareholders, including Southeastern Asset Management and T Rowe Price who opposed the terms of the deal, in arguing that the buyout “significantly undervalues” the world’s third largest computer maker.
A special committee on the board has said it would welcome Icahn’s input on the sale process.
In a letter to Dell’s board, Icahn took a stand against CEO Michael Dell and private equity firm Silver Lake Management’s plan to go private at $13.65 a share. He proposed instead that Dell pay shareholders a special dividend of $9 per share in a combination of cash on hand and additional debt.
Evercore Partners, a Dell advisor, has been running a “go shop” process. According to Bloomberg, Hewlett-Packard and Lenovo have both taken advantage of the buy-out talks in order to get a look at Dell’s books but are unlikely to make a bid.
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