Michael Dell, the billionaire founder of the PC maker. (Photo credit: Wikipedia)
Dell will provide an activist shareholder with a list of investors, hoping to staunch some of the criticism over the proposed $24.4 billion buyout of the PC maker.
Southeastern Asset Management, the computer company's largest outside investor, had asked Dell for the tally and criticized the deal. Southeastern believes the $13.65-a-share buyout severely underestimates the company's worth and estimates that the stock is worth more than $20 a share. A Southeastern spokesman this morning declined to comment.
Southeastern is actively attempting to add more votes to its opposition and has hired a proxy solicitation firm to gauge sentiment among Dell's other investors. T. Rowe Price has also publicly said it is unhappy about the buyout, a rare move for the $580 billion asset manager.
Now, activist investor Carl Icahn has also joined the fray. After disclosing a "substantial" stake in the company, Icahn urged Dell to scrap the buyout proposal and instead refinance and pay a hefty dividend to shareholders. Dell has agreed to provide Icahn with a discrete look at its books.
Billionaire Michael Dell partnered with private equity firm Silver Lake Partners to create the $13.65-a-share deal. Dell stock now sits at $14.35 a share. The Southeastern-led revolt comprises only about 15% of shareholders, likely to small a portion to scuttle Dell's plans. The extent of Icahn's stake, of course, remains unknown.
Both Southeastern and Icahn are experienced activists. Southeastern last year led a major campaign that eventually ousted Chesapeake Energy CEO Aubrey McClendon. Icahn has participated in campaigns for the better part of three decades, investing in companies from U.S. Steel to Netflix, and earning billions of dollars in the process.
Reach Abram Brown at abrown@forbes.com.
