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Dell Spikes On Carl Icahn Involvement

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Shares of Dell (NASDAQ: DELL) spiked over 2% in the afternoon Wednesday after David Faber reported that activist investor Carl Icahn had purchased about 6% of the company. Icahn is said to be filing a 13D, and will ask for a $9 per share special dividend for Dell shareholders.

Bloomberg then reported that the company had drawn interest from Hewlett Packard (NYSE: HPQ) and Lenovo, but both were unlikely to seriously pursue a takeover.

Early in February, Dell was set to be acquired by founder and CEO Michael Dell, along with private equity group Silver Lake Partners. Yet, certain shareholders felt ripped off by the $13.65 per share offer. Southeastern asset management said that the deal “grossly” undervalued the company.

A Barron's article about Barnes & Noble (NYSE: BKS) warned that shareholders in the bookseller shouldn't “allow a repeat of the recent Dell fiasco.”

Shares of Dell traded near $14.40 Wednesday afternoon. If Icahn is successful in coaxing the company into paying a $9 dividend, there could be significant further upside.

At any rate, the Dell story seems to be far from over.

Posted-In: Carl IcahnNews Dividends Hedge Funds M&A Intraday Update Movers General Best of Benzinga

 

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