Feeds

Investor Icahn needs a loan of $7bn to tick off Mike Dell

I do not like it, SAM-I-am. I do not like Michael's big plan

Internet Security Threat Report 2014

Activist investor Carl Icahn will need as much as $7bn to carry off his plan to pull Dell out from under Mike Dell's nose, banking sources have said.

The shareholder and his partner Southeastern Asset Management (SAM) have started talks with banks and financial firms to get bridge loans of up to $7bn for their plan to plough money back into Dell rather than letting Mike and his mate Silver Lake Partners take the firm private.

Sources told Thomson Reuters LPC that Jeffries and Co, the investment bank that's leading the deal, has already committed $1.6bn and is looking for commitments as large as $1bn from other lenders.

Mike Dell and Silver Lake Partners have put forward a plan to take Dell private at a price tag of $13.65 per share, or $24.4bn, and already have backing for around half of their plan from banks and Microsoft.

Icahn and SAM countered the deal earlier this month, proposing that shareholders get the option to hang on to their existing stock and get an extra $12 in either cash or shares. They argue that Mike Dell's offer undervalues the company, which still has a lot of potential in the enterprise services market. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
10 Top Tips For PRs Considering Whether To Phone The Register
You'll Read These And LOL Even Though They're Serious
Stop ROBOT exploitation, cry striking Foxconn workers
HP downturn and automation eroding overtime on China's production lines
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.