Icahn Gets Hit as Dell Deal Enters Final Round

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July 8 (Bloomberg) -- Institutional Shareholder Services Inc. said, in a surprise endorsement of the deal from the biggest shareholder-advisory firm, that Dell investors should back founder Michael Dell’s $24.4 billion buyout plan. Cristina Alesci reports on "Market Makers."

This is somewhat of a surprise, positive for michael dell.

We were expecting iss to come out against michael dell and silverlake.

This is a huge feather in michael dell's cap.

The bottom line is let's forget about the 25% premium.

Iss basically caved to message that michael dell was putting out there, which is that if you don't -- you are going to see the stock fall.

That would take time for carl icahn to lament his deal.

Shareholders would have to vote on michael dell's deal and then elect carl icahn's board, who would implement his plan to buy out 1.1 billion shares for $14 a share, technically higher than the bid for michael dell, but essentially iss says there's too much execution risk with the carl icahn plan.

This has to be a blow for carl icahn.

Does he respond?

It sets them back in terms of his shareholder vote.

Going into this deal, expecting that it would be a tight race -- in fact the numbers were actually in carl icahn's favor because -- so obviously, iss is recommending for deal with michael dell bodes well for michael dell's chances at this point.

But keep in mind, carl icahn was trying to urge shareholders to focus on the short term.

He was trying to tell them focus on the longer-term, because if you actually look at what the company has been out there saying, it they say that it is falling, pc sales are horrible, but they never revised earnings projections to reflect this horrible negative outlook.

Carl icahn's point is that look, even if it is going to be back, in the long term you will make a lot of money on turnaround efforts, and the shareholders should be allowed to participate in that.

We will see how influential iss really is with the shareholder vote.

Iss is influential in any vote.

In this one, there was particular attention given to it even the opposing views on the comedy's future.

That vote is july 18. cristina alesci, our deals reporter, on the latest feather

This text has been automatically generated. It may not be 100% accurate.


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