Carl Icahn has begun approaching investors in the hope of securing $5.2 billion in loans to back an alternative bid for PC maker Dell.
Icahn is one of Dell’s largest and most vocal shareholders against the $24.4 billion proposal from the company’s founder, Michael Dell. The buyout proposal, which equates to $13.65 per share, has been vehemently opposed by a number of the PC maker’s investors. Icahn and Southeastern are among the dissidents; Catherine Christner going so far as to file a suit with Delaware Chancery Court and accusing Dell’s board of directors of selling “Dell on the cheap.”
In a SEC filing, Michael Dell argues that the PC market is changing more quickly than anticipated, and in order to cater for shifting consumer demand, the PC maker has to go private. With the emergence of cloud computing and mobile technology, the company founder argues that Dell has to quickly transform into a Enterprise Solutions and Services (ESS)-focused firm in order to survive — which would be difficult to achieve if the company remained public.
SOURCE: zdnet.com
