Activist investor Carl Icahn finalized a deal in his bid to acquire Dell. CNBC’s David Faber & Maria Bartiromo speak to Carl Icahn about the details of the deal and what his plans are after the potential acquisition.
Carl Icahn video and transcript below
if, in fact, michael dell realizes that as well, do you think he will bump, and is there a price at which your shares can be bought? well, let me say it this way. there’s no way that i couldpredict what michael dell will do. and i don’t know if he will orhe won’t, but frankly, we really want to be involved in thiscompany. we think there’s great potential in it. i think there’s been a lot of eating, the pc business has fallen apart, and what i found over the years is when people tell you it’s no good and it’s bad, that’s when you buy. it’s the old graham doddphilosophy. i do not think the pc business is over. i think the pc business has been obviously curtailed a little bit, but pcs in offices aren’t going away. i think there will be iterations of it, and dell stands to benefit. you will have the screen, the keyboard, the mouse, and situated in these offices which dell is, i think they’re going to benefit from this whole attraction now with the pc. — over the last few years. right. you know, carl, i heard you had dinner with dell a couple of weeks ago. is that true? you know, we’re not supposed to talk about that, so i don’t know where you heard it, but you didn’t hear it from me. i didn’t hear it from — i am not talking about that. i won’t say yes or no. i don’t know where you heard it from. you don’t know where i heard it from. i haven’t told you i heard it anywhere. i didn’t hear it from you. i did hear you had dinner with him which would have been an opportunity for you to discuss what your price is or what histhoughts are about what he’s going to do for the company. but you’re not going to deny you had dinner with him, are you? i’m not — you know, it’s like they say, i won’t say yes or no. you know, carl, i think you choreographed what’s going on with pcs and mobility very well. and so, given that position and the fact that dell is — has been a lagger in pcs given the competition in the business, why pile all that debt on the company? are you concerned that when this is all over and done with, this is a company that’s going to face an enormous amount of debt in an environment that we know is struggling? yeah, i’m not — first ofall, we’re putting on $5.2 billion more debt, michael dell, who knows the company better than anyone, is putting $17 billion more on. so i don’t think that’s a major problem, maria. i think that if you look at the numbers, you look at the owned — look at their own plan or — they say that — you look at bcg, this company will earn on a pro forma basis after the tender — if everybody ts372 — that what’s on 2.3 billion, but that’s cost savings, getting75% of cost savings. no, if you get 75% of cost savings, it goes to 550. it goes much higher. in other words, it increasesdramatically if you get the cost savings, which i think you will.you get tremendous earnings coming in, a cash flow for at least the foreseeable future. and i don’t really think those earnings are going down. i think if anything, they spent $14 billion in the last few years on software. right. well, that may not be worth what they paid for it. you know that better than anybody. just because they paid a certain number — i think some of it — well,yeah, some will not be paid as much, but others haven’t yetcome to fruition, and they’ve got great stuff. and i really — you know, look, obviously, we’re putting a lot of money in today in this. of course, that’s senior debt. you could argue that senior debt is money could, but we’re putting up quite a bit, as isjeffries, we’ve done quite a bit of work on it. and i do think that this company has very good potential. carl, i want to — let me — i know we’re going to run out of time. i want to make an important point for the audience,@ for those who hold dell shares. if the deal is voted down on the 18th, you’re in a no-man’s land. nothing says your recap plan will be adopted by the booshd as you fight to replace them. what will happen then? is the stock going to fall dramatically? will you buy more? will michael dell be in the market? of course, he can vote hisshares at the annual meeting. he can’t vote them at the july 18th meeting. well, one thing you know, if it’s voted down, theshareholders still own dell. and we still own a company thatreally i think has great potential, but i think what will happen will be that — (unintelligible) want the $14 and they’ll elect apple and they’ll collect it. and unless dell decides to do a recap at a higher number, i mean, then obviously it’s an auction, if he decides to go and tender, that’s fine with me. so it’s up to dell. if he wants to go higher, the shareholders can go with him. carl, is there a role — is there a role for michael dell at the company if, in fact, you do win this? if i win completely — yeah. — i mean, look, i have nothing against michael dell. i think he missed this turn. i think he’s a smart guy. and, you know, look, if he stayswith the company, there might be a role for him. there might be — you know, there’s peace, there’s war, there’s peace, and peace is always better in these things. so if that happens, it happens.i really do think that some operating people should be brought in. but that’s something that i have to consider. carl — leave it there. — maria, one thing carl did want me to say, he’s on twitter, and he’s happy with it. tweeting a lot. — a platform, coming up with the 10 worst boards in the country. it’s a good buying opportunity to look at those guys that we’re going to talk about on twitter. got it. all right. carl, i’m going to send you atweet right now. how’s that? all right. i’m going to have you as one of my people. i’m going to follow you, carl. carl icahn, david favor, thank you very much.