Icahn vies for a 6pc stake in computer giant Dell

7 Mar 2013

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

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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.

Editor John Kennedy is an award-winning technology journalist.

editorial@siliconrepublic.com