Carl Icahn Leverages Vast Wealth To Enhance His Activist Investor Tag

Carl Icahn Leverages Vast Wealth To Enhance His Activist Investor Tag
Image source: CNBC Video Screenshot

Carl Icahn is leveraging his net worth of about $20 billion to enhance his brand of activist investor, comments Nathan Vardi of Forbes.

Carl Icahn Leverages Vast Wealth To Enhance His Activist Investor Tag

Forbes Magazine put Carl Icahn on its cover page earlier this year. He disclosed that without selling anything, he can write a check for about $10 billion.

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Keith Meister, a former lieutenant of Carl Icahn, pointed out that Icahn has the guts to do things in size and make big deals, as he has more money now than ever.

Icahn’s Leveraged Recapitalization Plan For Dell

Recently, billionaire Mr. Icahn and Southeastern Asset Management announced the company’s intention to go for a massive stock buyback paying investors $14 a share and leave Dell publicly traded. Many focused on Icahn’s apparent difficulty in securing financing to counter Michael Dell’s buyout for the company.

Earlier it was reported that with a shareholder voting in the offing and persistent opposition from two big Dell shareholders, Carl Icahn and  Southeastern Asset Management Chief Executive Michael Dell may have to increase the bid to carry on the payout plan of the company.

However, Carl Icahn used his large war chest to work. He arranged $5.2 billion in debt financing from the investment bank Jefferies.

Recently, there was a speculation that the influential shareholder advisory firm Institutional Shareholder Services (ISS) will back Carl Icahn’s offer over the go-private offer from Michael Dell and Silver Lake Partners.

Skeptics Express Doubt On Icahn’s Seriousness

Some skeptics express doubt that with his inability to raise more bank financing, Carl Icahn may not be serious in his plans for Dell.  They feel Carl Icahn might be indirectly pursuing an ambition for Michael Dell to pay more for Dell, as this would eventually enhance Carl Icahn’s bloated stake in Dell.

Earlier, Carl Icahn proposed that Dell Inc (NASDAQ:DELL) begin a $14 per share tender offer as a way of settling liquidity questions at the struggling PC maker. He also urged shareholders once again to vote against the go-private offer brought by the company’s founder.

The activist investor Carl Icahn is positioning himself to either prevail in his revamped effort to get Dell Inc (NASDAQ:DELL) to repurchase about 1.1 billion of his shares at $14 per share or go for Michael Dell’s original go-private offer at $13.65 a share.

A shareholder meeting to consider Michael Dell’s buyout proposed is scheduled for July 18.


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