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Icahn caves on Dell again, will not seek share rights

October 04, 2013 at 12:05 pm EDT

MarketScreener.com By The editorial team

Icahn caves on Dell again, will not seek share rights

SAN FRANCISCO (Reuters) - Activist investor Carl Icahn, who ended his months-long campaign against Michael Dell's planned buyout of Dell Inc last month, on Friday signaled his final retreat from the struggling personal computer maker.

The billionaire, who opposed Michael Dell's $25 billion offer to take Dell private, tweeted he will no longer seek "appraisal rights" for his shares, a legal process under which investors can try to get a Delaware court to determine the fair value of the stock.

"I withdrew my demand for appraisal of my Dell shares. Based on our returns on capital, we believe we have better uses for $2 billion," the billionaire tweeted.

Icahn last month ended his months-long effort to block the deal, smoothing the way for the largest buyout since the financial crisis. Icahn, the company's second largest shareholder at the time, said he would no longer try to head off the deal, and that a war with the billionaire founder and the company's board "would be almost impossible to win."

(Editing by Jeffrey Benkoe)

Stocks mentioned in the article

	Add to a list Add to a list 0 selected To use this feature you must be a member Log in Sign up	Price	Change	5d. change	Capi.
	DELL INC.	- USD	-	0.00%	36.92B
	VMWARE, INC.	142.5 USD	-4.96%	-4.51%	61.52B

Michael Dell

Michael Dell is the founder of Dell Inc., the second largest computer manufacturer in the world. With a net worth of about $ 14.6 billion, the Texas billionaire was the 44th richest man in the world according to Forbes 2011.

During the preparation of his degree in physics at the University of Texas, at Austin. Michael Dell spends all his time to the creation of PC's Limited, an IT company. PC’s Limited only manufactures custom-built computers. In 2004, Michael Dell founded the company Dell with only $ 1000.

Anxious to streamline its expenditures, Michael Dell develops an innovative strategy which, by assembling customized computers (only made-to-order) ensures to avoid costly and unnecessary inventory management. The concept really works so Michael Dell leaves the school to devote to the launch of Dell Computer Corporation. With a turnover of $ 35 billion and $ 2 billion of profits in 2002, Dell generates enormous profits.

In 2004, Michael Dell gives up his seat to Kevin Rollins as CEO but keeps the position of Chairman of the Board of Directors.

Taking advantage of the internet boom, Dell realizes nearly 50% of its business online. Every day, the company generates about $ 40 million.

But in 2007, Dell makes a succession of errors; delivery time are not guaranteed anymore, the manufacturer has to bring back nearly 4.2 million of defective batteries and HP, the main Dell’s competitor takes the first place. Michael Dell fires Kevin Rollins and takes charge.

The founder of the Texas firm manages to put Dell in the good direction but nevertheless his fortune markedly reduces because of the crisis and the decline in Dell stock prices.

Following the example of Bill Gates, Michel Dell has created “Michael and Susan Dell Foundation”, a foundation committed in education and health.

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Linked companies
Dell, Inc. Dell, Inc. Computer Processing HardwareElectronic Technology Dell, Inc. engages in the manufacture of electronic devices. Its products include laptops, desktops, tablets, thin clients, printers, monitors, software, workstations and accessories. The company was founded by Michael Saul Dell on February 1, 1984 and is headquartered in Round Rock, TX.	Chief Executive Officer
DFO Management /Private Equity/ DFO Management /Private Equity/ Investment ManagersFinance DFO Management /Private Equity/ (DFO) is a private equity subsidiary of MSD Capital Management LLC founded in 1998 by Glenn Robert Fuhrman and John Cartwright Phelan. The firm is headquartered in New York.	Founder