By Melodie Warner
Activist investor Carl Icahn said his Icahn Enterprises L.P.
(IEP) has signed a confidentiality agreement with Dell Inc. (DELL)
and said it looks forward to commencing its review of the computer
maker's confidential information.
Representatives from Dell weren't immediately available for
comment.
Last week, Dell moved to reassure employees about its planned
$24.4 billion leveraged buyout by founder Michael Dell, telling
them in an internal note that uncertainty and speculation related
to the deal "is all part of the process being led by our board of
directors."
Dell also noted that a special committee is currently managing
the so-called go-shop period that ends on March 22 and will
actively solicit and evaluate alternative proposals.
Last Tuesday, Dell made public a letter from Mr. Icahn that
asked the company to pay a per-share dividend of $9 if the deal is
voted down by shareholders. He also threatened the company with
"years of litigation" if it didn't combine a vote on the deal with
its annual meeting and said he will nominate a slate of directors
that, if elected, will implement the leveraged recapitalization and
dividend proposal.
Mr. Icahn's stance teams him up with Dell's largest independent
shareholder, Southeastern Asset Management, which also has
suggested a leveraged recapitalization as a solution. Southeastern
has also accused the company of withholding information from
investors in an effort to take the company private, a proposal the
shareholder continues to oppose.
Shares were recently trading 1.1% higher at $14.32 premarket.
The stock has climbed 40% since the start of the year, through
Friday's close.
Write to Melodie Warner at melodie.warner@dowjones.com.
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