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Dell signs deal to cap Icahn’s stake at 10%

16 Apr 2013

Dell laptopDell has reached an agreement with billionaire investor Carl Icahn, limiting his investment in the computer giant at 10 per cent.

The deal also bars Icahn from entering agreements with other shareholders that would give them a collective stake of over 15 per cent and allows the investor to make joint bids for the company with other stockholders.

Icahn has previously attacked Dell’s offer, arguing that it short-changed shareholders and bought a stake in the company to gain access to its books.

Dell said the agreement should “maximize the chances of eliciting a superior proposal from Mr. Icahn while at the same time protecting shareholders against potential accumulation of an unduly influential voting interest”.

Icahn and private equity firm Blackstone have already made preliminary offers that could prove superior to the $24.4bn joint bid made by Dell founder and CEO Michael Dell and private equity firm Silver Lake.

It has also been reported that Icahn and Blackstone could make a joint bid for Dell.

Blackstone has reportedly contacted Oracle CEO Mark Hurd about potentially running the company following the take-private.

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