Icahn Hits Speed Bump in Road to Dell (DELL) Riches
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Well, he could sell off some of that Herbalife (NYSE: HLF) stake.
According to the NYPost on Friday, activist investor Carl Icahn may not be able to swing his Dell (Nasdaq: DELL) bid after all. Along with partner Southeastern Asset Management, he is scrambling to put together a $5.2 billion financing package to meet a $13.65 per share bid offered by Silver Lake and Michael Dell.
Icahn has had to go back to the drawing board following comments from Dell's special committee that there is a $3.9 billion funding gap with his plan. Preliminary funding discussions were expected to close last Friday, but the revised plan may be presented next week.
Jefferies is managing the current financing round.
The Post noted that Icahn might see another challenge in that Dell is a challenging company to underwrite, making it that much tougher to secure a loan. Along with a dimmer view offered by Dell's special committee, interest rates have begun to rise in recent weeks, thus a loan package in May would have been much more cheaper than a current solution.
Shares of Dell are flat in early trading.
According to the NYPost on Friday, activist investor Carl Icahn may not be able to swing his Dell (Nasdaq: DELL) bid after all. Along with partner Southeastern Asset Management, he is scrambling to put together a $5.2 billion financing package to meet a $13.65 per share bid offered by Silver Lake and Michael Dell.
Icahn has had to go back to the drawing board following comments from Dell's special committee that there is a $3.9 billion funding gap with his plan. Preliminary funding discussions were expected to close last Friday, but the revised plan may be presented next week.
Jefferies is managing the current financing round.
The Post noted that Icahn might see another challenge in that Dell is a challenging company to underwrite, making it that much tougher to secure a loan. Along with a dimmer view offered by Dell's special committee, interest rates have begun to rise in recent weeks, thus a loan package in May would have been much more cheaper than a current solution.
Shares of Dell are flat in early trading.
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