Dell board warns Icahn bid may leave the firm short of cash

May 13, 2013

A plan proposed by Carl Icahn and Southeastern Asset Management last week as an alternative to Michael Dell's proposal to take his namesake company private would leave it short of cash, Dell's board warned the bidders on Monday. It wants to know more about the proposal—including who the bidders plan to put in charge of the company—before it can formally evaluate it, the board told the investors in a letter made public Monday. The company is already considering a proposal from founder Michael Dell and private equity firm Silver Lake to take the company private, and under the terms of that deal cannot formally consider any new bid unless it appears to be a superior proposal. Serious bid or plan B? It's not clear whether Icahn's plan is intended as an actual acquisition proposal that the Board could evaluate and potentially endorse or accept, or as an alternative it could consider if the pending sale to Silver Lake and Michael Dell fell through, the Special Committee of the Board of Directors wrote in the letter to Icahn and Southeastern. To read this article in full or to leave a comment, please click here

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