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Carl Icahn has bought 72M Dell (DELL +0.4%) shares from would-be buyout partner Southeastern...

Carl Icahn has bought 72M Dell (DELL +0.4%) shares from would-be buyout partner Southeastern Asset (half its stake), and is proposing a $14/share tender offer for 62% of Dell's outstanding shares (1.1B shares). The Southeastern deal makes Icahn Dell's largest outside shareholder. Dell, whose shareholder vote on Michael Dell/Silver Lake's LBO offer remains set for July 18, has edged higher to $13.45. (previous)
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Comments (3)
  • Joe2922
    , contributor
    Comments (442) | Send Message
     
    Dell is dead, good luck, Carl, there is no turning it around
    18 Jun 2013, 01:48 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (4381) | Send Message
     
    Dell itself is fine, but the insider takeover was greedy. The battle is destroying their chances to pull ahead here...

     

    Each month this goes on, the true value of DELL drops.

     

    I thought it was worth maybe $20 back in January... now I wouldn't comfortably pay more than $15.
    18 Jun 2013, 02:21 PM Reply Like
  • NWInvestments
    , contributor
    Comments (23) | Send Message
     
    Joe:

     

    You miss the whole point.

     

    Aristotle said that some things are simply a means to an end, and some things are ends in themselves.

     

    We are concerned with turning Dell around only in as much as it is a means to our ultimate goal which is to protect our own interests and unlock shareholder value instead of allowing Michael Dell to steal it all for himself.

     

    The proper end goal is to make sure that these assets and all of their future earnings power, which rightfully belong to the shareholders, are placed into the hands of the people who can run them most efficiently, and that the shareholders who took the risks, and financed the activities which lead to the creation of this enterprise, are compensated accordingly along the way.

     

    Right now, these assets are not in the hands of someone who is using them to maximize shareholder values.

     

    If turning the company around in its current form is the best way to unlock shareholder value, then I'm certain that this option will be one of the possibilities on the table, but it certainly isn't the only option.

     

    If selling off the PC or financing portion of the business is the most efficient way to unlock shareholder value, then I'm certain that this option will be on the table.

     

    I don't think Carl Icahn is naïve enough to rule out any of these options, nor should he.

     

    Whatever the case, there is still tremendous value in Dell in its current cash, receivables, brand, relationships, and it's acquisitions which will pave the way for the future, etc. Nobody disagrees with this fact. All you need to know is that Carl Ichan wants Dell. Southeastern wants Dell. Microsoft wants it. Michael Dell wants it. Silverlake wants it. There is no disagreement (however bad Michael Dell has tried to manipulate the finances as of late) that there is tremendous value here.

     

    The PC is a long way from being dead, the decline in PCs will slow down greatly when it reaches business users, mainly what you are seeing now is a flushing out of home users. Business users cannot work off of a tablet. Also this company has many enterprise level relationships already established into many businesses all across this country, and some smaller companies it has acquired to take advantage of future market developments.

     

    My take is that if Icahn gets ahold of it, he will unlock value for shareholders. If Michael Dell gets it, he will unlock value for himself. I want Icahn to win and unlock the value for existing shareholders who have invested in this company, since they are the rightful owners of these assets.

     

    Even if that means that some pieces get sold off and Dell looks totally different in 2-3 years.

     

    So I repeat your phrase with a completely different evaluation. Good Luck Carl, and as far as this deal is concerned I hope it's Michael Dell's future in this company that is dead. That would certainly unlock some value immediately.
    18 Jun 2013, 02:36 PM Reply Like
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