CNBC’s ‘Squawk Box’ team discusses Carl Icahn‘s letter urging voters to vote against the takeover bid.
Carl Icahn now owns 8.3 percent of Dell Technologies shares
Faber Report: Icahn challenges Dell deal
CNBC’s David Faber reports on Carl Icahn uping his stake in the technology company in an attempt to block the company’s plan to return to the public market without an IPO.
Carl Icahn Says DVMT Is More Valuable Than Dell Itself
Carl Icahn, chairman of Icahn Enterprises, discusses why he is trying to block Dell CEO Michael Dell’s announcement that the company plans to buy out its trading stock, VMware.
Q3 hedge fund letters, conference, scoops etc
Transcript
Well it's really not necessarily a fight because Michael Dell it came to my attention actually.
From a number of shelters that called me up and asked. I would say help you know that's happened to be quite a bit as I say in the letter over the years. So it is a very proud of our record but I've gotten help from those that asked for help you know. So that's why I'm there. And I tell you I think after studying it didn't appear to be the first to be the track or was a way to invest in it. But I have to study it. I think it's one of the best opportunities I've ever seen. You know I was the one that really talked about Apple. I remember the tweet and that's what Apple was great. And Apple was great for different reasons. But this is great because it's just picking up 11 billion dollars. Mathematically it's almost incredible.
That's why I'm involved in it. I mean there were reports as you say right you weren't good to fight. You heard from these other people you had more than one percent of the shares. And then you've been buying the heck out of it quietly and secretly over the last many weeks. Now you have 16 and a half million. How are you going to try and apply pressure on Dell to pay more for this tracking stock that you think is worth more around 144 whereas he seems to say 1 0 9 final offer. That's that's what it's going to be.
Yeah but I mean who wants his offer to say that's my final offer. I am saying that he really I think the real question is that he thinks he could coerce shareholders into taking his offer. It would scare tactics saying that if you know I'm going to take it. Are good to do with IPO and cram it down you and he believes because it's in the charter. When he bought EMC. They promised his investment back as promised that and told those that. That's why the cuts were a lot of the DVMT that tracker's holders are upset. He told them that he. And their investment bank has told them that. There would really be very little discount. Unless lessons were letting you have the track. But it's really like having a company company stock and the stock went up you are going to get. Or you'll get full value for that. He's done a lot to push that down. And.
You're not really not really supposed to do that because V.M. whereas I look at now trades you know north of 145. Obviously the tracker is is well below that and that's part of part of your point. You think his offer is dramatically undervaluing what VM Ware is truly worth. Well look what I really say that his whole modus operandi here.
Is is to go out and tell the trackers that they ought to take his deal that they have on the table now which I think is really only worth you know ideate to a hundred because I don't think Dell is worth very much to get is worth anywhere near what he says it is. The stock itself. Dell stock. Is traded based. On the fact that they own the we are which is a great company not because they own a mundane hardware company. That's where it would trade and and Gelo will tell you that the certificate of a corporation. That they have with the tracker allows them to cram the tracker would see stock. If they do an IPO. But what they really do not tell you is that Delaware is very explicit. That controlling shareholders directors have a right to share the duty of loyalty to the public shareholders such as a tracking stock. You know gold and silver lake cannot line their pockets with the stockholders expense.
