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Dell, Icahn agree to a share ownership cap

The Associated Press

Dell says a special committee of its board reached a deal with Carl Icahn to cap his share ownership while it considers takeover bids from the billionaire investor, a group led by CEO Michael Dell and buyout specialist Blackstone Group.

The Round Rock, Texas, personal computer maker says its board has approved the agreement with Icahn under which he and entities tied to him pledge not to make purchases that cause them to own more than 10 percent of the company's shares.

The deal also covers other shareholders who, together with Icahn, would own more than 15 percent of Dell's shares.

In exchange, Icahn is allowed to talk to other shareholders about putting together a superior proposal to that backed by Michael Dell.

Dell says the deal protects against a shareholder gaining an unduly influential voting interest.