Untitled Document
 Register Now & Save!
Untitled Document
2008 West Diamond Sponsor
Untitled Document
2008 West Platinum Sponsor
Untitled Document
2008 West Gold Sponsors
Untitled Document
2008 West Silver Sponsors
Untitled Document
2008 West Bronze Sponsors
Untitled Document
2008 West Exhibitors
Untitled Document
2008 West Media Sponsors
Untitled Document
2008 East Diamond Sponsor
Untitled Document
2008 East Platinum Sponsors
Untitled Document
2008 East Gold Sponsors
Untitled Document
2008 East Silver Sponsors
Untitled Document
2008 East Exhibitors
Untitled Document
2008 Media Sponsors
Latest News
In his session at 21st Cloud Expo, Carl J. Levine,...
"CA has been doing a lot of things in the area of ...
"NetApp is known as a data management leader but w...
"We're focused on how to get some of the attribute...
Data scientists must access high-performance compu...
Long-term partners Fujitsu Limited and Citrix Syst...
"WineSOFT is a software company making proxy serve...
As you move to the cloud, your network should be e...
In his session at 21st Cloud Expo, Michael Burley,...
22nd International Cloud Expo, taking place June 5...
Can't Miss RSS Feed
Subscribe to the RSS Feed & Get All The Conference News As It Happens!
Carl Icahn Threatens Michael Dell’s LBO
He claims his dividend scheme is superior to the current $13.65-per-share offer price

Carl Icahn, the famous "gangsta"-style activist investor, has stepped into the middle of Dell's $24.4 billion leveraged buy-out, threatening "years of litigation" if he doesn't get his way.

He has apparently amassed a 6% position in Dell, making him the company's second-largest outside stockholder, and he wants a $9-a-share special dividend paid out instead of letting Dell founder Michael Dell take the company private.

In a letter to Dell's board Thursday Icahn proposed that the dividend be paid if shareholders voted down the LBO and wants the vote combined with the company annual stockholders meeting so stockholders also vote on the board.

If they don't do that - that's where he's promising "years of litigation" challenging the LBO.

He claims his dividend scheme is superior to the current $13.65-per-share offer price although CNBC cast a question mark over Icahn's $9 arithmetic.

He is also obviously threatening to mount a proxy fight to unseat Dell's current board and implement a leveraged recapitalization and the dividend proposal, which would require new debt.

He said that if his slate of directors is elected Icahn Enterprises would provide a $2 billion bridge loan and he would personally provide a $3.25 billion bridge loan if needed - on commercial terms of course.

The special committee of the Dell board said Wednesday that it had unanimously decided after five months of consideration that the LBO was the best course for stockholders and had "negotiated aggressively" to get the best price. It said it considered breaking up the company, a leveraged recapitalization, a change to the dividend or doing nothing.

In response to Icahn it said it was still looking for a better alternative through a "robust" go-shop process that had the bankers at Evercore actively soliciting alternative proposals.

The go-shop period ends March 22 and the board welcomed Icahn's help finding an alternative. Reportedly Lenovo and HP aren't interested. And Blackstone, the private equity house, is apparently ambivalent about getting involved.

Dell's largest independent shareholder with an 8.4% position is Southeastern Asset Management, which is violently opposed to the LBO because the price is too low and it will lose money. It has also suggested a leveraged recapitalization and is hankering after a $12-a-share dividend.

Earlier this week it accused Dell of withholding information from stockholders. It wants a list of stockholders. It thinks Dell is worth around $24 a share.

T. Rowe Price, another large stockholder, is also opposed to the LBO.

Michael needs 42% of stock held by outsiders to back him. Abstentions count as "no." His opposition counting Icahn currently stands at around 21%.

Dell's shares are over Michael's price at around $4.20-$4.25.

About Maureen O'Gara
Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

In order to post a comment you need to be registered and logged in.

Register | Sign-in

Reader Feedback: Page 1 of 1

Untitled Document

Call 201 802-3020 or Click Here to Save $100!

Save $100

 Sponsorship Opportunities

Virtualization Conference & Expo, California and London is the leading event in its third year covering the booming market of Virtualization for the enterprise. Now featuring Cloud Computing Expo, this leading event will surely deliver the #1 i-technology educational and networking opportunity of the year for leading Virtualization technology providers.



Who Should Attend?

Senior Technologists including CIOs, CTOs, VPs of technology, IT directors and managers, network and storage managers, network engineers, enterprise architects, communications and networking specialists, directors of infrastructure Business Executives including CEOs, CMOs, CIOs, presidents, VPs, directors, business development; product and purchasing managers.

Cloud Computing Bootcamp

Introducing at Cloud Computing Expo 2008 West the world's first-ever full one-day, immersive "Cloud Computing Bootcamp" - led by developer-entrepreneur Alan Williamson, Founder of Blog-City.com and creator of the OpenBlueDragon CFML runtime engine.

View the full one-day schedule

Video Coverage of Virtualization Conference
on SYS-CON.TV

David Greschler: Virtualization Beyond the Datacenter to the Desktop
Miko Matsumura: Time Oriented Architecture: Evolution by Design?
Brian Stevens: The Future of the Virtual Enterprise
Kevin Brown: Leveraging Desktop Virtualization for Security, Manageability and Usability Beyond the Perimeter

Video Coverage of the Virtualization Power Panel 2007

Virtualization Power Panel 2007 with Gordon Jackson, David Christian, Ken Jisser and Ben Rudolf

 Conference Media Sponsor: Cloud Computing Journal

Cloud Computing Journal aims to help open the eyes of Enterprise IT professionals to the economics and strategies that utility/cloud computing provides. Cloud computing - the provision of scalable IT resources as a service, using Internet technologies - potentially impacts every aspect of how IT deploys and operates software.

Cloud Computing Expo 2008 Speakers Include...


VOGELS
Amazon


FEINBERG
EMC


WELTMAN
Yahoo

NICKOLOV
3Tera

HAAR
Appistry

ZHOU
Platform Computing

HERROD
VMware

KEAGY
GoGrid

KRISHNAN
ParaScale

COHEN
Enomaly

EATON
Cloudworks

BRYCE
Mosso

SHALOM
GigaSpaces

SOMAL
VMware

CHU
VMware

THORSTEN VON EICKEN
RightScale



SYS-CON EVENTS


Past Events Archive

SOAWorld Conference & Expo 2008 East
soa2008east.sys-con.com
Virtualization Conference & Expo 2008 East
virt2008east.sys-con.com
AJAXWorld 2008 Conference & Expo East
ajaxmar08.sys-con.com
SOAWorld Conference & Expo 2007 West
www.soaworld2007.com
Virtualization Conference & Expo 2007 West
virt2007west.sys-con.com
AJAXWorld 2007 Conference & Expo West
ajaxoct07.sys-con.com
SOAWorld Conference & Expo 2007 East
soa2007east.sys-con.com
Virtualization Conference & Expo 2007 East
virt2007east.sys-con.com
AJAXWorld 2007 Conference & Expo East
ajaxmarch07.sys-con.com
Other SYS-CON Events
events.sys-con.com

SOAWorld & Conference Alumni Delegates Represents...

• AccuRev
• Adea Solutions
• Adobe Systems, Inc [3 delegates]
• ADP
• Aeropostale, Inc
• Aetna
• Akbank Training Center
• American Family Insurance
• American International College
• American Modern Insurance
• Amphion Innovations
• Amplify LLC, Clipmarks [2 delegates]
• Anderson Consulting
• Arrow Electronics [3 delegates]
• Ashcroft Inc
• Athabasca University
• ATS
• Audatex
• Avanade, Inc.
• Avaya Inc. [5 delegates]
• Azul [2 delegates]
• Backbase [2 delegates]
• Bank of America
• Bank of NY
• Barnes and Noble
• Barnex Investment International Limited
• BEA
• Bear Stearns [2 delegates]
• Bendel Newspaper Company Limited
• BizInnovative
• Bloomberg [2 delegates]
• BlueBrick Inc.
• BMC Software
• Boeing
• Bottomline Technologies [2 delegates]
• BP
• Broadcom

   read more...
Cloud Computing Blogs
In other words, VMware’s server density is higher. Boles suggests this means that customers should be “assessing virtualisation on a ‘cost per application’ basis. VM density has a sign
Traditionally, the way people have implemented high availability is by using a high-availability management package like Linux-HA[1], then configure it in detail for each application, file system moun