|
The computer maker in July offered to pay $21.7 billion in cash
and stock to buy back shares tied to its interest in VMware,
returning the computer maker to the stock market without an
initial public offering.
Hedge fund manager Icahn, who owned a 9.3 percent stake in Dell,
had opposed the deal calling it a "conflicted transaction that
benefits the controlling stockholders, at the expense of the
DVMT stockholders".
Icahn sued Dell earlier this month and had said VMWare should be
worth $300 per share.
In its previous offer, Dell had offered to exchange each share
of VMware tracking stock for 1.3665 shares of its Class C common
stock with cash consideration of not more than $9 billion.
The current offer equates to 1.5043-1.8130 Class C shares with a
cash component of up to $14 billion.
Icahn did not immediately respond to requests for comment.
The tracking stock is tied to an 81 percent economic stake in
software company VMware. The transaction will allow Dell to
bypass the traditional IPO process, which would likely have
involved grilling by stock market investors over Dell's $52.7
billion debt pile.
The cash part of the increased offer price Dell will be funded
by new debt of up to $5 billion, the company said in a
statement.
Reuters reported on Tuesday that Dell was working with
investment banks to add more cash to its buy back offer.
(Reporting by Vibhuti Sharma in Bengaluru; Editing by Saumyadeb
Chakrabarty)
[© 2018 Thomson Reuters. All rights
reserved.] Copyright 2018 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
 |
|
