Seeking Alpha

Icahn sues to stop Dell from changing record date for LBO vote

  • Carl Icahn has filed suit against Dell (DELL +1.7%) and its board to prevent a change in the shareholder record date (currently June 3) upon which Friday's LBO vote will be based. A date change could lead to higher turnout, which in turn could help the deal pass.
  • Dell's board stated yesterday it's open to changing the record date, but rejected Michael Dell/Silver Lake's request not to recognized abstained votes as "no" votes.
  • Icahn is also demanding Michael Dell and affiliates not be allowed to vote shares bought after Feb. 5.
  • Dell is rallying today, but is still 6% below the revised LBO offer price of $13.75/share.
Comments (3)
  • So whats going to happen tomorrow? It's looking like the vote will take place and the deal will probably fall through. Then what happens? Icahn's offer is on the table? And voted up or down...and if that fails then what? The stock price drops to $7/share or goes up to $15/share (depending on who you ask)?

     

    This should be fun.
    1 Aug 2013, 01:51 PM Reply Like
  • The bottom line is despite all the back and forth, there are two parties interested in owning this company into the future, MD/SL and CI/SEA. I don't see how the stock could fall even if both offers fail to pass. Someone will come forward in the end and emerge the winner. HPQ perhaps?
    1 Aug 2013, 02:12 PM Reply Like
  • I can't predict the future with any degree of accuracy at all, so I try not to speculate who is going to come out on top of this after all the penis pounding and dust throwing stop.
    What I can predict with a much higher degree of accuracy is the past.
    I can absolutely guarantee that for any people who have been long term holders of Dell (over the last decade or more) are going to take any kind of a sale "in the shorts". The time to take profits was about the time that dope smoking kid was screaming out "Dude, it's a Dell."
    1 Aug 2013, 02:45 PM Reply Like
DJIA (DIA) S&P 500 (SPY)