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Rival Dell Buyout Plans Duke It Out

Posted by samzenpus on from the last-bid-standing dept.

jfruh writes "Michael Dell's plan to take the company he founded private, with help from Microsoft, isn't going smoothly. Corporate raider and major Dell stockholder Carl Icahn has presented a rival plan that would shut Michael Dell out. Perhaps predictably, the Dell board isn't sold on Icahn's idea, saying it will leave the company short of cash, even though they haven't been able to fully evaluate it yet."

9 of 59 comments (clear)

  1. Icahn is bluffing by JoeyRox · · Score: 4, Insightful

    He has no interest in the company - he just wants a quick payday. Problem for him is nobody is really that interested in Dell, so his machinations aren't going to work this time. It's comical that he thinks the company is worth north of $20/share.

    1. Re:Icahn is bluffing by game+kid · · Score: 5, Funny

      "Why am I making such a big offer for Dell that would drive out Mr. Dell? Because Icahn."

      --
      You can hold down the "B" button for continuous firing.
    2. Re:Icahn is bluffing by Penguinisto · · Score: 5, Informative

      Exactly. A quick look at his little history (especially with Yahoo a few years back) shows that he's only in it to score some meat from a dying company while the victim is still breathing. Notice that he doesn't really go after healthy, growing companies - only those which show signs of being in serious trouble.

      I suspect that if you work for a larger company? A perfect indicator of your corp being in deep kimchi would be the presence of Carl Icahn's active attempts at your company's financials... it's like seeing the Angel of Death, only he's going after the board of directors.

      --
      Quo usque tandem abutere, Nimbus, patientia nostra?
    3. Re:Icahn is bluffing by alen · · Score: 5, Insightful

      the original premise behind private equity was to buy a down on its luck company, fix its problems and get it profitable again. then sell it and pocket the profit on the real effort you did.

      today's version is to buy up a company with low debt and strong cash flow, saddle with debt, take the cash and run. management and shareholders like it as well since they get paid too

      buying up healthy companies screws the employees

    4. Re:Icahn is bluffing by mabhatter654 · · Score: 3, Informative

      Or in this case, Dell buys ITSELF back from stockholders "at large" and gets to decide who plays. So they can run the company without month-to-month dealing with these frivolous stockholder games.

  2. all about the $$$ by ganjadude · · Score: 4, Interesting

    I dont think he has any real interest in buying the company. I think he is trying to leverage a higher payout on his shares in the end. Cant blame him for wanting to maximize his cash but he is really acting like a dick

    --
    have you seen my sig? there are many others like it but none that are the same
  3. conversation: by WilyCoder · · Score: 4, Funny

    Icahn to Dell: "Dude, you're not getting a dell"

  4. Re:Not supposed to do that? by Anonymous Coward · · Score: 3, Funny

    Oh, you believed his promises? What next, you're going to marry a prostitute and rebuild a shipyard to make up for the fact that you've spent your life raping the world?

  5. Re: Purely Self-Serving by rudy_wayne · · Score: 4, Insightful

    Whether Michael Dell can succeed is a different matter, but he will try to turn the company around. .

    Whether or not Michael Dell will successfully turn Dell around is not the question. The question is, why hasn't he done it already since he's been CEO for about 7 years. If he hasn't been able to do it in the past 7 years, why would the next 2 or 3 years be any different?