Deals
Icahn Urges Dell to Commence $14-a-Share Tender Offer
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Billionaire investor Carl Icahn urged Dell Inc. to spend $15.4 billion to buy back most of its stock, his latest attempt to derail a planned leveraged buyout by founder Michael Dell.
Dell should make a tender offer for about 1.1 billion shares at $14 apiece as an alternative to the $13.65-a-share deal from Michael Dell and private-equity firm Silver Lake Management LLC, Icahn said yesterday in an open letter to the computer maker’s shareholders. The activist investor said the buyback addresses two shortcomings of the LBO offer: that it’s too cheap and doesn’t give shareholders the opportunity to profit for any improvement in Dell’s performance.