Icahn vies for a 6pc stake in computer giant Dell

7 Mar 2013

Dell chairman Michael Dell, whose plans to take the company private may be interupted by corporate raider Carl Icahn

Renowned US corporate raider Carl Icahn, who urged Yahoo! to sell to Microsoft when it had a chance, has waded into the US$24bn refinancing of computer giant Dell and is aiming at securing a 6pc stake in the company when it goes private at the end of the second quarter.

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.

Dell stockholders will receive US$13.65 in cash for each share of Dell common stock they hold.

Icahn is known for taking a position on major transactions and was prominent in the Yahoo!/Microsoft acquisition flop, urging Yahoo!’s dithering management team not to rebuff Microsoft’s offers. Microsoft had offered Yahoo! US$46.6bn but this was rebuffed and in the end the acquisition failed.

Icahn took a 5pc stake in the company and won a position for himself and two others on Yahoo!’s board.

It is understood that Icahn is urging Dell to pursue a leveraged recap of the computer giant rather than the US$13.65 a share agreed by Michael Dell, Microsoft and Silver Lake.

He is understood to have amassed close to 100m shares in Dell, which would bring him close to a 6pc stake in the company.

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