Billionaire investor Carl Icahn, who is fighting Dell Inc. founder Michael Dell’s plan to take the struggling company private, has entered a confidentiality agreement that would give him access to the computer maker’s financial records.
Michael Dell, Dell’s chief executive, is planning a $24.4 billion buyout that would make the Round Rock, Texas, company a privately-owned business. But Icahn and other investors say the price of $13.65 per share is too low.
Icahn’s company, Icahn Enterprises, has said it holds a substantial stake in the company.
Icahn wants the company to pay a special dividend of $9 per share, financed with existing cash and new debt, if shareholders reject the buyout offer.
The investor told Dell executives in a recent letter that if they decline to promise this one-time payout, then he wants the company to combine a shareholder vote on the buyout with its annual election of directors.
In that case, Icahn would nominate candidates who would implement the special dividend if they are elected, and Icahn and his company could provide more than $5 billion in loans to ensure prompt payment of the dividend.
Analysts say Icahn’s entry into the debate over the deal makes it less likely that shareholders will accept Dell’s current buyout offer.
Dell shares rose 21 cents to close at $14.37 Monday. Shares of Icahn Enterprises rose 40 cents to $61.20.