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Hedge Fund Activist Ichan Raises Over $5 Billion For Dell Bid

dell-logoNew York (HedgeCo.Net) – Activist hedge fund investor Carl Icahn and partner Jefferies & Co., have secured $5.2 billion in financing for their bid for a leveraged recapitalization of Dell, according to Reuters.

“With that we put an end to the unwarranted speculation by Dell that our money would not be available,” Icahn said in a letter to other shareholders.  He is currently the second-largest Dell shareholder.

Reuters says: “Obtaining the debt financing marks a critical step forward for Icahn’s and Southeastern Asset Management’s alternative offer for the company. Icahn and Southeastern are proposing that Dell buy back 1.1 billion shares at $14 apiece. The tender offer compares with founder Michael Dell’s and Silver Lake Partners’ $24.4 billion buyout at $13.65 a share, a price Icahn said substantially undervalues the company.”

Ichan secured the $5.2 billion in loans from several banks and institutional investors, according to reports, it includes a 6-year loan worth $2.2 billion, as well as a 3.5-year loan for $3 billion. The sum is part of a much broader plan on Icahn’s part to essentially take control over the company and provide an alternative to Michael Dell’s buyout deal that would take his company private.

Alex Akesson
Editor for HedgeCo.net
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