Michael Dell, Founder of Dell (Photo credit: Wikipedia)
Dell Slams Carl Icahn For Being Inconsistent
Carl Icahn and Southeastern Asset Management have apparently been slammed by a Dell special committee. He is attempting to propose his own deal for going private with the company, and it is clearly marked as incredibly inconsistent and impossible to implement based on his own actions.
Michael Dell was originally slated to buy out the company for around 24.4 billion dollars. There have been several disputes over this deal, and Carl Icahn has done his best to grab the company himself.
However, his attempts to do so have left himself and Southeastern Asset Management in a bad situation. He has made significantly varied offers which lack consistency, and all of which, Dell claims, would not leave the company with enough liquid assets to continue functioning.
On top of all of this, Carl Icahn has not even taken gotten committed financing for any offer he has currently made. His offers are all based on an unrealistic performance from Dell, b its own admission, and he is having serious problems finding the money he needs to do this. Nobody wants to invest in a scheme that is obviously fraught with risk and holes.
Granted, Southeastern Asset Management has done a study that showed that Dell should be worth a fair amount of money. However, immediately after this, it sold half of it's shares to Carl Icahn for significantly less than this. This shows a lack of confidence in their own study, and makes for a weaker argument than they would otherwise have.
Carl Icahn Ups the Ante on Heated Dell Deal