Investor Carl Icahn has stepped up his efforts to pinch Dell from under the nose of its founder Michael Dell by tabling a $16 billion offer for the ailing vendor.
The bitter battle for control of Dell between Icahn, who is backed by Southeastern Asset Management, and its founder Micheal Dell, who is supported by private equity firm Silver Lake, shows no signs of abating as the decision time for shareholders draws closer.
Icahn has revealed that he is willing to tender $14-per-share compared to Dell's offer of $13.65-per-share, which he feels undervalues the company. The investor also announced that he had purchased 72 million shares, making him the second largest shareholder.
Despite Dell's earning falling off the cliff in the first quarter of 2013 (down 79 per cent), Icahn's resolve to purchase the firm seems stronger than ever. In an open letter Icahn took a number of shots at the Dell special committee, which had claimed that he needed to work on his maths.
"We take this opportunity to respond to rumours regarding the availability of financing for our proposal for a recapitalisation at Dell and to address recent statements by Dell that demean the prospects of Dell. We are amazed by these statements by the Dell Board," Icahn said.
"In what other context would the person tasked with selling a product actually spend their efforts negatively positioning the very product they are trying to sell?...Can you imagine a real estate broker running advertisements warning of termite danger in a house each time a prospective buyer seems interested?"
The Dell special committee convened on 5 June and recommended that shareholders vote through the $13.65-per-share cash offer from Michael Dell and Silver Lake in a meeting on 18 July.
However, Icahn is adamant that the $13.65-per-share offer is not only inadequate, but it represents a conflict of interest and breach of fiduciary duty.
"We continue to urge Dell shareholders to vote against the proposed Michael Dell/Silver Lake going private transaction at the July 18 Special Meeting," Icahn added.
