Wednesday, June 19, 2013
Icahn Pushes Dell For Share Buyback
Investor Carl Icahn is looking to force Round Rock-based Dell to buy back $16 billion in shares, to help bolster the returns of its investors--and disrupt Michael Dell's efforts to take Dell private. In an open letter to shareholders Tuesday, Icahn said that Dell should buy up to 1.1 billion shares of its stock at $14.00 per share, and that shareholders should turn down the proposal by Michael Dell and private equity partner Silver Lake. Dell has been fighting Icahn, as well as fellow dissident investor Southeastern Asset Management, over the terms of the going-private deal. Icahn said it will also support actions against the current proposal from Silver Lake and Michael Dell, which allege "conflicts of interest and breach of fiduciary duty" in that offer.