Carl Icahn Likely To Oppose Dell Buyout
Investor Carl Icahn owns six percent of Dell, and several insiders believe he will use his 100 million share stake to oppose the upcoming company’s public-to-private buyout.
Sources close to negotiations claim that Icahn met with Dell’s special committee and urged them to offer a one-time dividend to shareholders. Icahn didn’t get the traction he had hoped for during his Dell meeting and will likely join Southeastern Asset Management’s opposition to the privatization deal.
In order for Dell to remove itself from the stock exchange and become a private company, it must receive a shareholder majority vote. Michael Dell, the company’s largest shareholder, is not included in that vote.
If Carl Icahn partners with Southeastern Asset Management, they would have a 20 percent voting share in opposition of the buyout.
Southeastern Asset Management has the most to lose if the deal should come to pass. The company would give up approximately $825 million. Southeastern CEO Mason Hawkins is a force to be reckoned with, having railed against company’s that have been mismanaged.