Icahn Signs Confidentiality Pact With Dell

by Christopher Freeburn | March 11, 2013 12:44 pm

Icahn 1063525001 e1291056531509 Icahn Signs Confidentiality Pact With Dell[1]Carl Icahn is getting a peek[2] at Dell’s (NASDAQ:DELL[3]) 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.

Under the terms of his proposal to the board, Dell would pay shareholders a $9 a share dividend[4]. 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[5]) 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[6]. His investment consortium includes a private equity firm and Microsoft (NASDAQ:MSFT[7]).

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

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2010/11/Icahn_1063525001-e1291056531509.gif
  2. getting a peek: http://online.wsj.com/article/SB10001424127887324281004578354003145798658.html
  3. DELL: http://studio-5.financialcontent.com/investplace/quote?Symbol=DELL
  4. would pay shareholders a $9 a share dividend: http://investorplace.com/2013/03/icahn-takes-stake-in-dell-proposes-alternative-to-buyout/
  5. BX: http://studio-5.financialcontent.com/investplace/quote?Symbol=BX
  6. leveraged buyout bid for the company: http://investorplace.com/2013/02/dell-to-go-private-in-24-billion-buyout/
  7. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT

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