Carl Icahn unveils new proposal for Dell

Computer firm’s board gets offer

Michael Dell wants to buy the company.
Michael Dell wants to buy the company.

NEW YORK — Billionaire investor Carl Icahn proposes that Dell shareholders get a chance to own a bigger stake in the struggling computer maker in an effort to thwart 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 get warrants plus the cash he had recommended for shareholders.

Icahn previously proposed that Dell ‘‘self-tender’’ 1.1 billion shares of its stock for $14 per share. His revised proposal adds one warrant for every four shares. The warrant would give shareholders the right to buy one Dell share for $20 during the next seven years. Dell’s shares have not traded above $20 since 2008.


In a letter to shareholders, Icahn values his offer at about $15.50 to $18 per share.

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But Michael Dell and Silver Lake Partners have offered to buy the company for $13.65 per share. Shareholders are scheduled to vote on that offer at a meeting Thursday.

Icahn argues that Michael Dell’s offer undervalues the company and has asked a judge to assess its fairness.

The activist investor has proposed alternatives to keep the firm publicly traded, but none have swayed the board from the deal with Michael Dell. 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.