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Icann not backing down

by on08 April 2013

Proxy fight to the death over Dell

Carl Icahn is refusing to drop out of his proxy fight to force Dell to pay a big dividend, in spite of the company’s request that he drop his threats and launch a formal bid for the company.

Icahn had asked the board's special committee to be reimbursed for the cost of his due diligence on Dell something the company gave rivals Silver Lake and Blackstone. Dell said it would consider Icahn's request to cover the cost of his expenses for discovery, but only if he would drop his rights to a proxy fight and threats of "years of litigation."

Icahn said he is considering a range of options, including his earlier proposal for a dividend, which would necessitate a proxy fight, as well as his preliminary bid to buy up to 58 percent of the company. He currently owns a $1 billion worth of Dell shares. Icahn said that no matter how much Dell was willing to pay to reimburse him, he was not going to give up the right to put in a bid that the thought would be compelling to shareholders, even if the board doesn't like it.

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