Is Icahn's New Bid Changing Anyone's Mind?

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July 12 (Bloomberg) -- Brian Marshall, Senior Managing Director at ISI Group, with Bloomberg’s Cristina Alesci and Trish Regan, discuss Carl Icahn’s new bid for Dell and whether investors may be swayed. They speak on Bloomberg Television’s “Market Makers.” (Source: Bloomberg)

It is all about getting dealt to respond, isn't it?

Greg there's an opportunity to do more.

There are three different things that can happen between now and july 18. investors have a choice.

"no on the deal, the gevo yes on the deal, when they can vote to exercise their appraisal rights, or they have a 60 day window where they could continue to do that or just eventually go with the $13.55. what he is doing here is putting a little more pressure on michael dell and silverlake to sweeten their deal.

To make sure that shareholders feel like they're getting the best.

Is what icon is putting on the table -- is what carl icahn is putting on the table realistic?

Does dell have the potential to get to that high of a percentage in the shares in the stocks?

It implies that dell's stock is going to be valued at $20 a share, and this is fundamentally the most challenged company.


Why would michael dell want to buy this?

Why would silverlake want to get involved?

This is a decaying industry that has no shot, so why go into this?

The beauty of the dell business money -- mo del is the great distribution the -- distribution service area.

They can get out of customer service, it will be messy.

Are they getting too good a deal?

I think they are paying up.

Greg seo been been working the funds on this, what do you hear as to whether or not michael dell will raise his bid?

They're saying there is more value, and that my -- michael dell and silverlake could put some more money on the table.

The problem for shareholders is really that they do not feel very safe about turning down michael dell's deal because the carl icahn proposal creates a publicly traded stub that is a question in valuation.

For shareholders, they would rather have seen an increase in the percentage that carl icahn is taking out.

He is still taking out 70% of the shareholders under michael dell.

What this offering is basically another deal on the table.

It is another reason for people to vote no come up or to say they want to exercise their appraisal rights.

If they exercise their appraisal rights, that means the fee -- that one single judge gets to decide everything.

If you're michael dell, you like those odds.

They think the state -- shareholders will say we think we are worth $16, we do not want to go to their.

If this is just a stalling tactic by carl icahn, the other option is that they could go with him and vote against michael dell and silverlake's offer, but the board is trying to explain to the shareholders about why it is not that greater deal.

It gives full control of the boards and its nominees to the carl icahn group.

You have considered these possibilities, and shareholders really want more money, but if the routes to get more money is to put your full faith and trust a carl icahn, what is the likelihood that -- let's put it this way, what is the likelihood he could find somebody capable of running this company and generating the kind of value he says is not being offered to shareholders?

I think is very difficult.

I think if you look at it among the investors are only going to get the opportunity to go into appraisal if they actually vote for the deal.

That is a very good point.

That is something to point out in the committee.

Shareholders seeking up -- appraisal will create a termination of the merger agreement.

I do not think that carl icahn thinks he is going to get a favorable judge when -- w in, given the history there.

This is not the first time carl icahn and angry shareholders have taken their case to delaware.

But this is a different case.

Completely different case.

Greeks -- you think this is not the best option?

The shareholder advisory group.

Are like on had a very interesting response, we have that clip.

I do respect them.

They are not analysts, and they do not claim to be.

They are just reading the 0 -- drinking the kool-aid that dell gives them.

I think they'll will be able to take advantage of that.

He has a point, he has been doing that for many years, and he has a lot more wins than losses.

What do you say response to that?

I think carl icahn has a nominal track record and i think he is trying to get a little bit more money out of the silverlake party.

But i think he is unlikely to get any more out of it, and that the shareholder should take the other deal.

They say they are committed to bringing in management far superior to michael dell, in a recent statement.

What do you think?

He said he is looking at several candidates, and he cannot go public with those names yet.

What others knew about the ceos in similar remedies?

-- but others knew about the potential ceos in similar companies.

That shareholder vote is happening on the 18th.

We'll be there, and it will be a rather dramatic vote.

What carl icahn is doing very successfully here is to inject some uncertainty whether or not the dell/silverlake deal can close in the timeframe they say it can close.

As a very very crucial point here because at the end of the day the shareholders wanted their value, and carl icahn is inserting some uncertainty.

Take you all.



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