Is Icahn Taking a Risk With Dell?

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Sept. 9 (Bloomberg) -- Billionaire Carl Icahn gave up his fight to control Dell, saying he continues to oppose founder Michael Dell’s $24.9 billion plan to take the company private because it undervalues the computer maker. Cristina Alesci explains why Icahn may be taking a risk. (Source: Bloomberg)

Billion bid to take the company private is too low, he does not think he will be successful at blocking it.

Cristina alesci joins us from new york.

Is carl icahn taking a risk?

Yes, actually, he is.

Although he is giving up the public fight, he will still vote no and exercise so-called appraisal rights.

That means he goes to a delaware court and the delaware court of the monthly decide whether or not the $13.65 deal on the table with a 13¢ dividend is a fair offer.

The company -- the court could rule that the company is worth less.

In that case, carl icahn gets whenever the court decides.

That risk did not seem to bother him.

What did seem to bother him was the board.

Take a listen.

From our viewpoint, we lost.

We did the work of the board should have done.

The board acted in iran this way.

They just caved in.

-- acted in a horrendous way.

They just caved in.

Michael dell acted in his own self-interest, which makes some sense.

But why the board just gave the company away and did not even truly do a true ownership is beyond me.

Carl icahn was asked how much money he made on a dallas investment and he declined to say how much.

-- on the dell investment and he declined to say how much.

Is this a done deal?

Deal makers around the country will look at this as one of the highest profile examples of how an hacktivist can stand -- stepped into a fully negotiated deal and drive the price higher.

I talk to the head of m&a at credit suisse, christiane, and he said we should see a lot more bold moves -- chris young, and he said we should see a lot more bold moves by activists.

You had david einhorn and carl icahn between -- tweeting out the impending meeting with the ceo.

That would not have happened.

It is the way they are stretching out amongst the entire marketplace.

Young talked about how hacktivists are going after companies that are may be well run, but, of course, have enough

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


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