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Icahn Signs Confidentiality Pact With Dell

He opposes Michael Dell's bid to take the company private


IcahnCarl Icahn is getting a peek at Dell’s (NASDAQ:DELL) books.

The billionaire’s investment firm announced on Monday that it has concluded a confidentiality agreement with the struggling computer maker. The move comes after Icahn urged the company’s board to issue a special dividend instead of approving a buyout proposal from its founder, the Wall Street Journal noted.

Best Buy Founder’s Buyout Bid Ends
Best Buy Founder’s Buyout Bid Ends

Under the terms of his proposal to the board, Dell would pay shareholders a $9 a share dividend. The size of Icahn’s stake in the computer maker is uncertain, but he is rumored to hold as much as 6% of its outstanding common shares.

In addition to Icahn, The Blackstone Group (NYSE:BX) has reportedly also entered into a confidentiality pact with Dell in order to examine the company’s financial records.

Last month, Michael Dell announced a $24.4 billion leveraged buyout bid for the company. His investment consortium includes a private equity firm and Microsoft (NASDAQ:MSFT).

Shares of Dell rose more than 1% in Monday midday trading.

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