Icahn agrees to 10 percent stop-sign for Dell Inc (NASDAQ:DELL) - BX

Northern, WI 04/17/2013 (avauncer)- Carl Icahn the billionaire investor continues to look for options for the $24.4 billion buy-out offer that Michael Dell has put forth for Dell Inc. (NASDAQ:DELL) (Closed: $14.04). However, he has acceded not to accrue over 10 percent of stake in the company. Dell had provided Icahn with a limited extension to discuss his deal with other investors. The Round Rock, Texas-based company said that Icahn has acquiesced not to join other stakeholders to build over a 15 percent stake. Dell said that on April 10, Icahn had received the approval of regulators to buy upto 25 percent of outstanding shares.

Shareholders oppose
The original bid of $13.65 per share that had been put forth by the founder Michael Dell and Silver Lake Management LLC to take the company private had encountered opposition from the largest shareholders of the company who said that the offer undervalued the company. Last month, Dell had announced that it had received possibly superior counter-offers from Icahn and The Blackstone Group L.P (NYSE:BX) (Closed: $20.92, Up by 2.10%). This had increased the pressure on Michael Dell to re-look at his offer or consider switching allegiances. This agreement is an indication that the Dell board is taking Icahn seriously.

The offers…
Icahn had offered $15 per share in cash for 58.1 percent stake while Blackstone’s offer had been over $14.25 per share. Two of the computer-makers biggest outside investors, T. Rowe Price Group Inc and Southeastern Asset Management Inc said that the offer that Michael Dell had put forth undervalues the company. There was no immediate response for requests for comments from Dell, Silver Lake, Blackstone or Icahn’s representatives.