78 F
Fort Worth
Saturday, September 26, 2020
- Advertisements -
Technology Icahn backs sweeter Dell counterproposal

Icahn backs sweeter Dell counterproposal

Other News

Wall Street posts solid gains after surge in corporate deals

By ALEX VEIGA and DAMIAN J. TROISE AP Business Writers Wall Street kicked off the week with a broad...

Tarrant County ranks low in work-from-home study by NAR

North Texas ranks pretty high in the “Work from Home” category, according to a just-released study by the National Association of Realtors....

Commentary: Universities and COVID-19: Charting turbulent times

Ray Perryman As the COVID-19 pandemic emerged this spring, college campuses across the United States swiftly sent students...

Linear Labs introduces electric motor that will fit inside a pocket

Leading the new wave of electrification, a Fort Worth-based technology company has built an electric motor that can fit inside one's pocket,...
Robert Francis
Robert Francis
Robert is a Fort Worth native and longtime editor of the Fort Worth Business Press. He is a former president of the local Society of Professional Journalists and was a freelancer for a variety of newspapers, weeklies and magazines, including American Way, BrandWeek and InformatonWeek. A graduate of TCU, Robert has held a variety of writing and editing positions at publications such as the Grand Prairie Daily News and InfoWorld. He is also a musician and playwright.

Dell headquarters in Round Rock. Photo by CNN     NEW YORK (AP) — Billionaire investor Carl Icahn is proposing that shareholders of Round Rock-based Dell Inc. get a chance to own a bigger stake in the struggling computer maker in hopes of thwarting an attempt by the company’s founder to buy it for $24.4 billion and take it private. Icahn, who owns a nearly 9 percent stake in Dell, now wants shareholders to receive warrants in addition to the cash he previously recommended be given to shareholders. Icahn previously proposed that Dell “self-tender” 1.1 billion shares of its stock for $14 per share. Icahn’s revised proposal adds one warrant for every four shares. The warrant would give shareholders the right to buy one Dell share for $20 over the next seven years. Dell’s shares haven’t traded above $20 since September 2008. In a letter to shareholders, Icahn values his counterproposal at about $15.50 to $18 per share. Meanwhile, company CEO Michael Dell and Silver Lake Partners have offered to buy the entire company for $13.65 per share. Shareholders are set to vote on that offer at a meeting Thursday. But Icahn argues that Michael Dell’s offer undervalues the company and earlier this week asked a judge to assess its fairness. The activist investor has proposed a variety of alternatives to keep the company publicly traded, but none have swayed the board from its support of the deal with Michael Dell and Silver Lake. What’s more, Dell’s board said its representatives contacted more than 70 potential suitors without finding any willing to ante up more than $24.4 billion. In a late Friday July 12 statement, Dell’s special board committee overseeing the company’s sale said it’s reviewing the merits of Icahn’s latest offer. For now, the committee still recommends that shareholders accept the offer from Michael Dell and Silver Lake. “We have been and remain willing to meet or talk with Mr. Icahn about his various proposals, including at a meeting scheduled earlier this week which he requested and subsequently cancelled,” the board said. Dell has fallen on hard times as more consumers and companies buy smartphones and tablets instead of laptop and desktop computers. Michael Dell is betting that he will be able to revive the company that he founded in 1984 by cutting costs, overhauling the sales force and diversifying into more profitable technology niches, such as business software, data storage and analysis and consulting services. The changes are likely to lower Dell’s earnings, the main reason that Michael Dell wants to engineer the turnaround away from the financial pressures of Wall Street. Dell shares slipped 3 cents to close at $13.32 Friday.    

 

- Advertisements -
- Advertisements -

Latest News

New measurements show moon has hazardous radiation levels

By MARCIA DUNN AP Aerospace Writer CAPE CANAVERAL, Fla. (AP) — Future moon explorers will be bombarded with two...

Breach at software provider to local governments, schools

By FRANK BAJAK and JAKE BLEIBERG Associated PressDALLAS (AP) — A major provider of software services for governments and schools across the...

Apple debuts discount watch, but no new iPhones … yet

By MICHAEL LIEDTKE AP Technology Writer SAN RAMON, Calif. (AP) — Apple introduced a cheaper version of its smartwatch,...

Q&A: What does a deal between TikTok and Oracle mean?

By ZEN SOO AP Technology Writer HONG KONG (AP) — ByteDance, the Chinese company that owns the popular video-sharing...