Icahn builds Dell stake, complicating buyout
San Francisco/New York: Activist investor Carl Icahn has built a stake of around 100 million shares in Dell Inc and wants the personal computer maker to conduct a leveraged recapitalization, complicating founder Michael Dell's effort to take the company private, CNBC reported.
Icahn, who is known for shaking up management, has accumulated a stake in Dell representing 6 percent of the company, CNBC cited sources familiar with the investment. That would make the billionaire investor, known for challenging corporations on their strategy, the next largest shareholder after Southeastern Asset Management, based on previously available data.
The network reported that Icahn wanted Dell to take on debt of as much as $9 billion and pay out a special dividend to shareholders, and will likely oppose the deal. Shares of Dell closed almost 1.8 percent higher at $14.32. Icahn did not respond to requests for comment.
Icahn's arrival on the scene typically puts companies - and their boards - on guard, because the outspoken activist investor has a reputation for aggressively demanding changes by building up stakes in target corporations.