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Tag - Icahn
Carl Icahn has backed down once again from his ongoing dispute with Dell over the company's move to go private. In a Twitter post, the activist investor noted that he would no longer seek "appraisal rights" for his stake in the company, which would have taken the disagreement over share value to a Delaware court.
A legal effort to prevent a change in voting rules in the upcoming Dell privatization effort has been denied by Judge Leo Strine of the Delaware Court of Chancery. Carl Icahn and his voting block were trying to stop a September 12 shareholders' vote on Michael Dell and investment partners' offer, that has had its voting rules recently modified by a slight increase in the buyout offer. The judge ruled that the vote is "probably within the time the court itself might set."
The Delaware Chancery Court has scheduled a hearing for Friday, August 12 at 12:30PM to determine if investor Carl Icahn should be granted an expedited hearing to attempt to block a change in voting rules in the Dell privatization process. The investor sued Dell and its special board to prevent what he views as an unfair change in the voting rules that CEO and founder Michael Dell lobbied the board for when he raised his offer for the company to $13.75 per share plus a $0.13 per share special dividend.
The Dell special committee overseeing Michael Dell's privatization effort of his company has accepted an increased offer of $13.75 with a special dividend of $0.13 per share as a one-time dividend payable on or before closing. As part of the deal, the committee has accepted the condition that votes not cast are no longer counted against the buyout, but are not counted at all.
Further complicating the Dell buyout, investor Carl Icahn is claiming that he will increase his bid for the company on Friday. Icahn said that he will make the new offer, allowing shareholders to purchase additional shares of the company at a future date at a price of $20, regardless of the company's share value at purchase time.
According to reports from CNBC, Dell's special committee has examined Carl Icahn's new offer backed by verifiable financing, and is requesting Michael Dell and his cadre of investors raise the standing offer. Icahn's deal will keep the company pubic, and is worth $14 per share, with Michael Dell's current offer to take the company private sitting at $13.65.
Microsoft may be facing a major reorganization one internal source called "titanic" on July 1, one week after its Build developer conference. The shift is allegedly creating four separate divisions within the company, consolidating the many groups and divisions within the company into enterprise, hardware, applications, and services.
Investor Carl Icahn and Southeastern Asset Management have proposed a new offer to Dell shareholders, who are considering a proposal by founder Michael Dell's group of investors, including Microsoft, to purchase existing shares at $13.65 each in order to take the company private. In a letter to Dell's board of directors, Icahn and Southeastern are counter-proposing a deal to give all Dell shareholders the option to retain shares in the company, plus take an additional $12 a share in cash or stock.
Blackstone Group is ending its offer for control of Dell, citing a 14-percent drop in PC sales for the first quarter of 2013 and a lower earnings forecast for the current financial year. The withdrawal of Blackstone leaves founder Michael Dell and equity partner Silver Lake to fight with Carl Icahn for ownership of the PC manufacturer.
Carl Icahn is continuing his quest to take a part in the future of Dell, or at least make a hefty profit off the effort the company is making to go private. The investor is refusing to rule out the possibility of a proxy fight to compel Dell to pay a large dividend to shareholders, despite the board's request that he cease the threat and make a formal bid for the company.