Skip to main content

Dell buyout challenged by another major investor and potential bids from Lenovo and HP

Dell buyout challenged by another major investor and potential bids from Lenovo and HP

Share this story

dell logo stock
dell logo stock

Dell's buyout deal is reportedly facing more opposition from shareholders, and competing offers could be in the works. Sources have told Bloomberg that fellow computer makers HP and Lenovo have expressed interest in buying the company at a higher price, as has Blackstone Group. The sources say HP and Lenovo are unlikely to actually pursue a bid, but their consideration will complicate Michael Dell's plan to take the beleaguered company private for $24.4 billion provided by himself, equity firms, and a Microsoft loan.

Meanwhile, prominent investor Carl Icahn — recently known for his heavy investment in Netflix — seems to have his own plans in the works. CNBC sources reported yesterday that Icahn has collected a roughly 6 percent stake in Dell, which he'll use to oppose the deal and suggest a one-time payout to investors. Dell confirmed that he is attempting to stop the company from going private, instead pushing it to refinance and pay a $9 per share dividend to shareholders. If Icahn indeed has a 6 percent share, that could make him one of the largest outside shareholders, giving him leverage.

Icahn is believed to have bought a 6 percent stake in Dell

It would also add him to a growing list of major shareholders who oppose the buyout. Southeastern Asset Management, which holds an 8.5 percent stake, has said it opposes the current terms of the deal, and T. Rowe Price, which is believed to hold 4.4 percent, has also said it will vote against the current proposal because it "does not reflect the value of Dell." Others may vote against it as well. Dell is apparently still in talks with Icahn, but Icahn has said that if his terms are not accepted by the current board of directors, he will run a new slate that will be more amenable.