Scott Eelis | Bloomberg | Getty
Carl Icahn, billionaire investor and chairman of Icahn
Enterprises Holdings LP
What is the
possibility Carl Icahn will drop out of the Dell deal? CNBC's
David Faber reports. With Kate Kelly.
As time gets tight for
Carl Icahn and Southeastern Asset Management to shore up the
structure and financing of their recap plan for
Dell, sources close to the situation said the chances that
Icahn will bow out of his pursuit of the recap have grown
While Icahn is not
talking, bankers and bond investors who have negotiated with him
to line up what is now $5.2 billion in financing said the prospect
of a need for another $2 billion in equity for a recap is giving
Icahn pause as he reviews the horrendous operating numbers that
Dell has recently reported.
Those numbers, when
coupled with the need for more debt and equity to address a
so-called liquidity gap in funding a $12 special dividend, may tip
Icahn to bow out. His teaming with Southeastern Asset Management,
however, may add a layer of complexity to that decision, should it
A spokesperson for
Southeastern had no comment.
Whatever path the group
chooses, it is running out of time to do so. The meetings with
proxy advisory firm ISS, at which both Dell and Icahn will present
their plans, are fast approaching. Without a shored up financing
plan for his recap, Icahn has little chance of winning ISS's
backing—backing that's likely to prove crucial in the July 18
shareholder vote on the deal.
—By CNBC's David