New York, NY, United States (4E) – Billionaire investor Carl Icahn announced that he is giving up the battle for the control of Dell Inc., saying he still opposes the plan of founder and CEO Michael Dell and his private-equity partner for a $24.9bn buyout and take the company private because it undervalues the struggling PC maker.
After the takeover offer was announced in February, Mr. Icahn increased his holdings and campaigned against the deal saying the offer is too cheap. He built up his position to about 9 percent, giving him leverage in the vote count. The special committee delayed the vote twice on concerns that the shareholders would not support the deal.
Last month, Mr. Dell and partner Silver Lake Management LLC raised their buyout proposal, adding a 13 cent-per-share dividend on top of an already improved $13.75-per-share bid for the computer giant. In his filing on Monday, Mr. Icahn said that the price is still 70 percent lower than $42.38, the stock’s peak in 10 years.
While he continues to reject the buyout offer and pushes for appraisal rights, Mr. Icahn’s retreat removes a major stumbling block for the takeover bid. Shareholders are set to vote on the buyout on Sept. 12 at Dell’s headquarters in Round Rock, Texas.