Icahn Says 13 Cent Increase in Dell (DELL) Offer Insulting
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Price: $442.08 +1.68%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.7%
Revenue Growth %: +50.5%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.7%
Revenue Growth %: +50.5%
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Carl Icahn told investors he believes the Dell (Nasdaq: DELL) buyout group's 13 cent increased offer in an insult.
"In every war there are many battles. We are pleased today to have won yet another battle, but the war regarding Dell is far from over," said Icahn.
"Through its actions today, the Special Committee has finally acknowledged publicly what we have been saying all along - that Michael Dell's offer substantially undervalues the company. Obviously Mr. Dell's previous characterization of his
offer as "best and final" was neither. However, we are not satisfied - we believe that an increase of a mere 13 cents is an insult to shareholders. And promising shareholders an additional 8-cent dividend that we were already entitled to, and pretending that it is some sort of gift, is a further slap in the face," he added.
Icahn said he continues to believe that the Special Committee is improperly putting its thumb on the scales in favor of Mr. Dell's offer by changing the voting rules midstream and by refusing to hold the Special Meeting and the Annual Meeting on the same date and time - the only mechanism that would give shareholders a true choice.
"As such, we will continue to vigorously pursue our lawsuit in the Delaware Court of Chancery," he said.
"We believe this lawsuit has now become of paramount importance. It is crucial that the Special Meeting and the Annual Meeting be held on the same date and time and that the same record date be used for both meetings. This is particularly significant due to the large number of shares that are now in the hands of arbitrageurs," he concluded.
"In every war there are many battles. We are pleased today to have won yet another battle, but the war regarding Dell is far from over," said Icahn.
"Through its actions today, the Special Committee has finally acknowledged publicly what we have been saying all along - that Michael Dell's offer substantially undervalues the company. Obviously Mr. Dell's previous characterization of his
offer as "best and final" was neither. However, we are not satisfied - we believe that an increase of a mere 13 cents is an insult to shareholders. And promising shareholders an additional 8-cent dividend that we were already entitled to, and pretending that it is some sort of gift, is a further slap in the face," he added.
Icahn said he continues to believe that the Special Committee is improperly putting its thumb on the scales in favor of Mr. Dell's offer by changing the voting rules midstream and by refusing to hold the Special Meeting and the Annual Meeting on the same date and time - the only mechanism that would give shareholders a true choice.
"As such, we will continue to vigorously pursue our lawsuit in the Delaware Court of Chancery," he said.
"We believe this lawsuit has now become of paramount importance. It is crucial that the Special Meeting and the Annual Meeting be held on the same date and time and that the same record date be used for both meetings. This is particularly significant due to the large number of shares that are now in the hands of arbitrageurs," he concluded.
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