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Dell Computer Corporation (DELL) Message Board

  • islandbrook2000 islandbrook2000 May 18, 2013 7:59 AM Flag

    Ichan deal offers huge upside.

    The deal that Ichan presents to Dell shareholders offers huge potential upside.As I under it, the deal offers two options {1} $12 cash and retain your Dell shares in the form of a stub or {2} forego the $12 cash payment and convert yout shares to a stub on a ratio of 7.27 shares and thus end up with 8.27 new Dell stub shares. Ichan and Southwest have stated that they plan to persue option 2
    According to the offer the Stub could earn between $0.50-$0.89 per share..Applying a 6 multiple gives value of $3.00 to $5.34 or $24.80 to $44.16 per Dell share.While entirely cannot deny that the Ichan offer gives Dell shareholders a huge upside potential as an alternative to giviing all the future upside to Michael Dell.

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