(Adds number of shares owned by Mr. Icahn in paragraph
three.)
By Tess Stynes
Dell Inc. (DELL) has received two alternative takeover
proposals--one from activist investor Carl Icahn and the other from
a private equity fund managed by Blackstone Group LP (BX)--that a
special board committee said may result in superior proposals to
the one offered last month by founder Michael Dell.
Mr. Dell, whose offer of $13.65 a share values the struggling
company maker at more than $24 billion, has said he's willing to
explore in good faith the possibility of working with third parties
on the alternate takeover proposals. His offer was made in
conjunction with investment firm Silver Lake Partners.
The offer from Mr. Icahn, who owns about 80 million shares of
Dell, includes a total $5 billion equity commitment. He is offering
to purchase $2 billion of the surviving firm's shares for $15
apiece as well as offer an additional $2 billion of cash equity
financing, in addition to shares he and his firm already owns.
Meanwhile, a group led by Blackstone Management Associates is
offering to acquire Dell for $14.25 a share and said existing
shareholders would have the opportunity to remain on board.
Blackstone Group LP and activist investor Carl Icahn expressed
interest in the computer maker before a key deadline for offers
expired Friday, with each notifying the special committee that they
were working on firm bids, according to The Wall Street
Journal.
The special committee said it hasn't determined that either the
Blackstone proposal or the Icahn proposal in fact constitutes a
superior proposal to the existing merger agreement, and neither is
sufficiently detailed or definitive for such a determination to be
appropriate.
Dell shares rose 3.3% at $14.60 in recent premarket trading.
Write to Tess Stynes at Tess.Stynes@dowjones.com
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