Icahn Withdraws Appraisal Request for Dell Stake
By Miles Weiss - Oct 4, 2013 12:35 PM ET
the activist investor who opposed the $24.9 billion buyout of Dell Inc.,
has backed away from a demand for an independent court appraisal of his
stake in the PC maker.
“I withdrew my demand
for appraisal of my Dell shares,” Icahn said today in a post on Twitter.
“Based on our returns on capital, we believe we have better uses for $2
The withdrawal is a
reversal for the billionaire investor, who claimed that the $13.75 a share
buyout proposed by founder
and Chief Executive Officer
Michael Dell undervalued
the Round Rock, Texas-based company that bears his name. Icahn had said he
planned to petition the Delaware Chancery Court for an independent
valuation of his shares and had urged other shareholders to do the same.
Had he gone forward, Dell would have had to pay Icahn whatever the court
decided his stake was worth, plus interest of almost 6 percent.
Dell filed a
Form 8-K (DELL) with the
U.S. Securities and Exchange Commission today stating that Icahn notified
the company yesterday that his affiliates “have withdrawn their written
demands for appraisal” for all 156.5 million shares that they held.
“We are going to proceed
accordingly with the rest of the process, including closing” the buyout
later this month “and then with whatever litigation occurs down the road,”
David Frink, a Dell
spokesman, said today in an interview.
Dell received appraisal
requests for a total of 225 million shares, including the 156.5 million
held by Icahn, said a person familiar with the matter, who asked not to be
identified because the information hasn’t been made public. That suggests
investors holding an
additional 68.5 million Dell shares passed up the $942 million they would
have received through the buyout in order to pursue a court valuation for
Icahn did not
immediately return a call seeking comment.
To contact the reporter
on this story: Miles Weiss in Washington at
To contact the editor
responsible for this story: Christian Baumgaertel at
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