Carl Icahn called on fellow Dell Inc. (DELL) stockholders to
seek an appraisal of their shares, another attempt to force the
group buying out the struggling computer maker to push up its
price.
"We believe if you seek appraisal, you will receive more," he
said in an open letter to shareholders.
A Dell representative wasn't immediately available for
comment.
Mr. Icahn, Dell's second-largest shareholder, has repeatedly
criticized founder Michael Dell and private-equity firm Silver Lake
Partners' offer to take Dell private for $24.4 billion, saying the
group was undervaluing Dell's shares with its $13.65 per-share
price tag.
However, shareholder adviser Institutional Shareholder Services
Inc. as well as Egan-Jones Proxy Services and Glass, Lewis &
Co. have recommended Dell stockholders vote for the buyout offer,
significantly improving the odds of the deal passing.
In his latest letter to shareholders, Mr. Icahn suggested
shareholders seek appraisal on their shares to find their "fair
value." He added that those seeking appraisal can change their
minds about that action up to 60 days after the merger and still
take the $13.65 per-share offer. But, those seeking appraisal may
"get lucky."
"Dell may well pay a premium over $13.65 to settle with those
seeking appraisal," he said.
Mr. Icahn last month bought nearly $1 billion Dell shares from
another dissident investor, bringing his stake in Dell to about 8%
and making him its second-largest shareholder.
Mr. Dell and related parties own about 16%.
Dell shares closed Tuesday at $13.36 and were inactive
premarket. The stock is up 32% so far this year.
Write to Ben Fox Rubin at ben.rubin@dowjones.com
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