Carl Icahn wants Dell to pay investors $15.7 billion in special dividends.
The path to privatizing Dell may not be as quick and easy as Michael Dell anticipated. To recap, Michael Dell, with the help of private equity firm Silver Lake Management and a significant loan from Microsoft, hammered out an agreement with Dell's board of directors to acquire the company in a deal that would pay public shareholders $13.65 a share, ultimately valuing the deal at $24.4 billion. Over the past couple of weeks, some investors have spoken out in opposition of the deal, including Carl Icahn.
Mr. Icahn last week said the sale price undervalues the company. He wants Dell to pay a special dividend of $9 per share, which works out to an additional $15.7 billion. Should Dell reject the one-time payment, Icahn threatened a lawsuit.
In light of all this, Dell and Mr. Icahn entered a confidentiality agreement that gives him access to the company's financial records, Mecury News reports. It's Dell's hope that Mr. Icahn will back down from his legal threat, or at the very least reduce the amount of the special dividend request.
Dell's stock is currently hovering around $14.30 per share.