--Shareholders set to vote July 18
--Letter responds to assertion of funding shortfall
--Icahn says founder could still have role with company
(Updates with Icahn comments on CNBC.)
By Anna Prior
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 the 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 had 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.
Mr. 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 as much
as $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. Icahn recently met Mr. Dell for dinner, according to CNBC
reporter David Faber--a report the activist investor declined to
confirm.
Mr. Icahn told the network that Dell's founder could still have
a role at the company if his challenge to Dell's private-equity
buyout offer succeeds, though he made it clear he has other
candidates in mind for the company's top spot.
"If he stays at the company, there might be a role for him," Mr.
Icahn said. "There's peace, there's war...peace is always better
with these things."
Some shareholders have sharply criticized Mr. Dell's $24.4
billion buyout offer, worth $13.65 a share, since it was unveiled
in February, suggesting it undervalues the company. Shareholders
are set to vote on the deal July 18.
Dell said in a statement that the special committee has reviewed
Mr. Icahn's letter and will review any additional information,
including financing commitments, regarding his recapitalization
proposal. 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 were up three cents at $13.34 in after-hours trading.
--Drew FitzGerald contributed to this article.
Write to Anna Prior at anna.prior@dowjones.com
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