Dell gives Icahn the go-ahead to study its books

11 Mar 2013

Corporate raider Carl Icahn has been granted Dell’s permission to study the company’s books. He has signed a confidentiality agreement with the company.

It emerged last week that Icahn had taken a 6pc stake in Dell.

Last month, Dell revealed it plans to go private under a US$24.4bn transaction by founder Michael Dell and global tech investment firm Silver Lake and involving loans and financing from Microsoft and major investment banks.

It is understood that investment firm Blackstone Group has also received similar permission to Icahn to study Dell’s books.

According to the Wall Street Journal Icahn is understood to have written to Dell’s board opposing the buyout and to come up instead with a plan that would deliver significantly more to shareholders.

He also wanted to give shareholders the right to be able to vote between the buyout or a US$9 special dividend to shareholders.

Icahn threatened Dell’s board with years of litigation if it didn’t heed his warnings, according to the Wall Street Journal.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years