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May 10, 2013

Icahn Suggests Michael Dell Could Be Fired as CEO if New Board Voted In at Dell

By Ed Silverstein, TMCnet Contributor

Could Michael Dell (News - Alert) find himself at a Texas unemployment office later this year – armed with a laptop that bears his name?



If investor Carl Icahn has his way –Michael Dell could soon be out of a job as the company’s CEO.

Icahn suggested canning Dell Friday in a television interview on CNBC.

Icahn said earlier this week he wants to nominate a slate of 12 new directors at the company’s annual meeting.

“He will not be running the company,” Icahn said during the CNBC show – if the new slate comes in.

“It’s not that I have anything against [Michael] Dell. I’m sure he’s a very nice guy. But it’s a new world out there.”

In repeating earlier concerns, Icahn said on TV that “the shareholders in this case are literally getting screwed” – when it comes to the $24.4 billion offer from Michael Dell and Silver Lake Partners to take the company private.

“I think it’s ridiculous,” Icahn added in response to a CNBC question about what Michael Dell is trying to do. “It’s really a travesty.” He compared it to a sketch on the Saturday Night Live comedy show on TV.

He also called the offer “the great giveaway.”

“You can camouflage it with numbers and whatever, but $13.65 is a giveaway,” Icahn added.

Southeastern Asset Management and Icahn want shareholders to be able to keep their stock in the company, and pay them another $12 a share or other shares. On the other hand, Michael Dell wants to pay $13.65 a share, TMCnet reported.

Together, Icahn and Southeastern hold 13 percent of the company's stock, according to The Wall Street Journal.

In addition, a committee named by the board of Dell said it is “carefully reviewing” the offer from Icahn and Southeastern.

“Mr. Icahn and Southeastern have outlined a potential leveraged recapitalization transaction that they want the Dell Board either to recommend at this time or to consider if the existing going-private transaction is rejected by Dell shareholders. They have also proposed replacing the Board with a slate of new directors who they say would approve such a transaction. Consistent with the Special Committee’s goal of achieving the best possible outcome for all shareholders, we and our advisors are carefully reviewing the potential transaction to assess the potential risks and rewards to the public shareholders,” the committee’s statement said as reported by All Things D.




Edited by Rory J. Thompson
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