Activist investor Carl Icahn said he has raised more than $5
billion to finance his plan to recapitalize ailing PC maker Dell
Inc. (DELL), a move he said should end speculation that the funds
wouldn't be available.
Last month, Mr. Icahn stepped up his bid for Dell, disclosing he
had nearly doubled his stake in company while also calling it to
launch a tender offer for 1.1 billion shares at $14 each.
On Monday, Mr. Icahn said in a letter to Dell shareholders and
members of its special committee that he has obtained lender
commitments for $5.2 billion in debt financing and "with that we
put an end to the unwarranted speculation by Dell that our money
would not be available."
Mr. Icahn also called for a direct, face-to-face sit down
meeting with the special committee.
Icahn has said financing for the tender offer would be provided
from $5.2 billion of debt financing, together with $7.5 billion in
cash at Dell and $2.9 billion from the sale of receivables.
The proposal calls for Dell to launch a tender offer for up to
$16 billion of its shares--more than half of the company's market
value--as an opposing option to founder and chief executive Michael
Dell and Silver Lake Partners' go-private offer for the
company.
Mr. Dell's $24.4 billion buyout offer, worth $13.65 a share, has
been sharply criticized by some shareholders as undervaluing the
company since it was unveiled in February. Shareholders are set to
vote on the deal July 18.
Representatives for Dell didn't immediately respond to requests
for comment, but the company has said in the past that Mr. Icahn's
concept doesn't adequately address the liquidity issues and other
risks the committee previously highlighted, and continued to
recommend the earlier deal.
Dell shares edged up a penny to $13.33 in recent trading. The
stock has risen 6.6% in the past 12 months.
Write to Anna Prior at anna.prior@dowjones.com
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