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Icahn to review Dell’s books after challenging $24.4bn PE-backed buyout

11 Mar 2013

Dell laptopCarl Icahn, the billionaire investor who has  criticised the $24.4bn PE-backed buyout of computer giant Dell, has gained access to its books.

Icahn Enterprises revealed it had entered into a confidentiality agreement with Dell, adding that it was “looking forward to commencing its review of Dell’s confidential information”.

The agreement is expected to prevent Icahn from publicly challenging the deal.

Last month Dell agreed to a $24.4bn deal to sell itself to a consortium led by founder Michael Dell and private equity firm Silver Lake, marking the largest leveraged buyout since the onset of the global financial crisis.

But Icahn, who last week acquired a six percent stake in Dell, has been trying to block the deal after arguing it benefits co-founder Michael Dell at the expense of the company’s shareholders.

On Friday Icahn told the Financial Times that “so many companies in our country are so badly managed that when someone is willing to go to the trouble of fighting to try to improve them there are great rewards”.

Shareholders will receive $13.65 in cash for each unit of common stock under the agreed deal, representing a 25 per cent premium over the company’s closing share price of $10.88 on January 11, the last trading day before rumours broke that the company was in take-private talks.

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