Carl Icahn owns 6% of DELL’s shares and he says that DELL is crazy if they think they can get share holders to accept a $13.65 buyout deal. Dell has about $9 a share in cash and because of this Icahn says they need to value the company at a price that includes the cash. That would put the price at about $22.81 a share but the current price is $14.30 a share. So does anyone think Icahn can win this battle? Obviously current share holders have not accepted the $13.65 price since the shares are currently selling for more. So how much more can Icahn get DELL’s buyer to shell out to make this situation go away?
Considering it's trading at over the offer price, the deal isn't going through. Icahn is stating the obvious.
The value isn't 22.81, since the current price obviously includes the cash value. There's some debt, though. About $6/share, taking the net piggy-bank value down to only about $3/share. The valuation as a productive company is about $11 a share but was looking at $7 when Mike Dell made his bid.. He realized the shareholders no longer valued it properly and tried to get the assets for cheap.
He is not likely to want to bid himself up, since his alternative is to keep owning the company without owning all of the shares. And there's nobody else chasing the company. So the idea of an acquisition is probably simply dead.
Icahn can put together a counteroffer. But he doesn't seem willing to do that, since he just wants the cash dumped without a change in control. So he's beating a not-dead horse that might as well be.
The last computer (laptop) I bought was an ASUS and I am very happy with it. I used to buy HP laptops but finally decided I wasn't happy with them anymore. Every time I searched for computer with a particular Intel processor in it the computer company that offered the same features at the lowest price kept turning out to be Asus. I used to buy their motherboards when I used to build my own custom desktops but then decided that desktops were too power hungry and were driving up my electric bill which I determined with the Kill-A-Watt meter I bought on Amazon. For some reason I gravitated toward HP because I thought that making a laptop was a bigger deal and I wanted the engineering that a larger company would offer. I’m convinced now that my Asus is a better built computer than any HP I ever owned. It is heavier though. But that isn’t much of an issue because I stopped bringing my laptop on travel as I now bring my android tablet computer with me.
If you go to Amazon you can find a lot of configurations of Asus laptops sold by people here in the US that buy them in quantity and then sell them out of some small office in an industrial park. I can only imagine that these people are making it difficult for the likes of Dell. I found one such company that was located a few miles from my home so I picked it up as will call and had them refund the delivery charges to my credit card. It also allowed me to turn it on and make sure it was working before I accepted delivery. The place was a mess and I thought to myself that this was good because I wasn't paying for fluff. They guy spent his time on the phone most of the time accepting orders or buying more product and he had a few technicians in another room installing the hard drive image files that Asus provided for various configurations. There were boxes lying all over the place. I would hate his job but it looked like he had a good little business going on for a young guy in his late 20s.
I bought DELL on Monday after reading a Barron,a article over weekend and sold at $13.35. I did not want to be a long term DELL investor if LBO fell through. DELL is a good story but does not match what's going on at Herbalife. I wish we could get Ackman to openly short AGNC and present one of his famous 300 slide presentations. Carl would run the PPS to $40.