Categories: Tech & Society

Carl Icahn To Take Up a 6% Stake in Dell

Carl Icahn, American business magnate and 26th on the Forbes list of The World’s Billionaires, is close to taking up almost 6% stake in Dell. Trading sources said they were confident that Icahn had amassed a position in Dell that may approach 100 million shares, and would bring him to a roughly 6 percent ownership.

On Wednesday, a special committee of Dell’s board was appointed to investigate whether selling the company would be the best option for its investors, despite the objections of Southeastern Asset Management (SAM), Dell’s largest single shareholder.

CNBC today reports that Icahn, who has reportedly been buying up Dell shares over the last two weeks, also opposes the $13.65-per-share buyout. He has already met with advisors to the board’s special committee to propose a rather different course of action.

According to sources, Carl Icahn wants to have a different approach to the Dell buyout different from what is proposed right now. He wants an alternative leveraged recapitalization plan that would pay shareholders “a significant one-time dividend.”

When reached for comment, Icahn said he wouldn’t discuss Dell or any rationale he had for the investment. However, people familiar with the situation said Icahn has met with advisors for Dell’s special committee and urged them to pursue a leveraged recap of the computer maker—rather than the $13.65 a share leveraged buyout by Michael Dell and Silverlake that has been agreed to.

Rejecting the buyout would require a vote by the majority of shares not currently owned by Michael Dell. Southeastern Asset Management, which holds 8.4 percent of the company is actively trying to organize shareholders to vote the deal down. In such a case, Icahn could be a key player.

Prateek Panda

Prateek is the Founder of TheTechPanda. He's passionate about technology startups and entrepreneurship and enjoys speaking to new founders every day. Prateek has also been consistently regarded as one of the top marketing experts in the region.

Recent Posts

Indian gaming shifts from audience to creator “given India’s mobile-first gaming capabilities”

The Indian gaming industry is sitting on an industry explosion in the near future as…

9 hours ago

Transforming modern business operations: How Microsoft 365’s AI Integration is automating HR workflows & enhancing employee experiences

In today's fast-paced business world, when employee fulfillment and efficiency are crucial, technology has become…

11 hours ago

Outbound & inbound: India attracts businesses from UK, China & US while expanding to Middle East

The Tech Panda takes a look at how India has been attracting foreign businesses from…

1 day ago

UPI value & volume surpass records in March

India’s digital payments ecosystem achieved a record high in March, with UPI transactions reaching INR24.77…

1 day ago

AI-powered digital twins, Cobots, agentic AI, physical AI & edge computing are enabling an anticipatory AI-first manufacturing ecosystem

Tata Consultancy Services (TCS) (BSE: 532540, NSE: TCS), ), a leader in IT services, consulting, and business…

1 day ago

Misinformation & deepfakes help weaponize AI: Should AI be as open as the internet then?

The ability for AI to spread misinformation has been reaching hair-raising lengths, another and possibly…

3 days ago