Next Score View the next score

    Icahn launches new attack on Dell buyout

    NEW YORK — One of the biggest critics of Michael Dell’s plan to take the company he founded private has launched a fresh challenge to that $24.4 billion bid and says the slumping PC maker needs new leadership.

    Billionaire investor Carl Icahn has teamed with Dell’s largest independent shareholder, Southeastern Asset Management, to pitch a deal that would let Dell shareholders keep their stake in the company and give them either $12 per share in cash or additional shares.

    Icahn and Southeastern say this alternative, which would keep the company publicly traded, gives shareholders a stake in future company gains, according to a May 9 letter sent to Dell’s board.


    An investment group led by Michael Dell offered earlier this year to pay $13.65 per share in a deal that would take the Round Rock, Texas, company private.

    Get Talking Points in your inbox:
    An afternoon recap of the day’s most important business news, delivered weekdays.
    Thank you for signing up! Sign up for more newsletters here

    But Icahn said Friday during a CNBC interview that price amounted to a giveaway.

    ‘‘It’s really a travesty,’’ he said.

    Icahn and Southeastern heaped more criticism on Dell’s offer in the letter.

    They accused the Dell board of insulting shareholder intelligence by claiming to be focused on shareholders’ best interests while accepting Dell’s offer to buy the company for ‘‘far below what we consider its value to be.’’


    A special committee of Dell Inc.’s board said in a separate statement that it is carefully reviewing the proposal from Icahn and Southeastern ‘‘to assess the potential risks and rewards to the public shareholders.’’

    Icahn and Southeastern say they would pay for their offer with existing cash from the company and about $5.2 billion in debt, which would be less than Michael Dell’s plan requires.

    Southeastern and Icahn said they own about 13 percent of the company’s outstanding shares.

    They want the Dell board to put their proposal before shareholders instead of proceeding with Dell’s buyout offer.

    Associated Press