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Carl C. Icahn and his affiliates today
issued the following open letter to stockholders of Dell Inc.
Dear Fellow Dell Stockholders:
It seems to me that the Dell Board has shamelessly attempted to frighten
stockholders throughout this process. But the scary facts they bring up are
often the result of Dell's own actions. They tell us about the profitable PC
market drastically declining and point to their quarterly numbers. But they
neglect to point out the reduction in margin is of their own doing because
they have, of their own volition, lowered prices which obviously have
drastically reduced margins. But even Dell's own management believes this is
temporary.
Another scare tactic of Dell is to tell stockholders that if you vote down the
freeze out bid of Michael Dell/Silver Lake there is risk the stock price will
drop because of the "gap period" between July 18 and the proxy fight at the
annual meeting. But this is simply another blatant obfuscation of the facts
because they neglect to inform you that the law requires that they hold a
stockholder meeting by August 14. As cynical as I am about the Dell board, I
do not believe that even this board will violate the law and push that meeting
out over the objection of stockholders, in order to help Michael Dell.
Therefore, if the Michael Dell/Silver Lake proposal is voted down I believe
that despite the scare tactics the annual meeting will be held very promptly.
I should like to diffuse another scare tactic of Dell's. The company will
tell you that if Michael Dell/Silver Lake's offer is turned down, Icahn might
still lose the proxy fight at the annual meeting. But this is nonsense
because it makes no sense to believe stockholders will vote to elect the
current board with their abysmal record and turn down our recap offer of $15
to $18 per share unless the current board makes a superior recap offer. If
that occurs, it will be a pleasant choice for stockholders.
It is also pure conjecture for the board to tell you that you will receive
Dell's $13.65 sooner than you will receive the cash from our recap because
even Dell admits their own transaction will close sometime in October.
Actually, there is more risk to the Dell deal than that because if China does
not provide its approval by November, Michael Dell/Silver Lake can abort the
Dell transaction without paying any penalty.
Sincerely,
Carl C. Icahn
Icahn Enterprises LP
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