CORPORATE RAIDER Carl Icahn reportedly has amassed a six percent stake in Dell with plans to oppose its leveraged buyout.
Dell entered into a $24.4bn deal with private equity firms and investment banks and even got a loan from Microsoft in a bid to take the firm private.
However CNBC is reporting that legendary corporate raider Carl Icahn has purchased about 100 million Dell shares over the past two weeks and is set to oppose Dell's plans to complete a leveraged buyout.
Dell founder and CEO Michael Dell has been the key player in trying to take the company private, claiming it is the right thing for the firm to do in the long term. However Icahn reportedly wants to angle for a one-time special dividend to investors, a move that might please other investors who oppose Michael Dell's plans.
According to CNBC, Icahn has yet to sign a confidentiality agreement and join the so-called 'go shop' process being conducted by Dell's special committee that is handling the deal and is planning to file a Schedule 13D with the US Securities and Exchange Commission. Institutional investor Southeastern Asset Management, which has a 8.4 percent stake in Dell, has already disclosed that it is opposing the leveraged buyout.
Dell's deal involves private equity firm Silver Lake Partners, with Microsoft providing a $2bn loan to grease the wheels. After the deal was announced Michael Dell went on a charm offensive trying to sell the leveraged buyout as a positive thing for the firm, which has in recent years been on a downward spiral. µ