Icahn Nears Finalization of Dell (DELL) Financing Loan
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Price: $399.49 -2.43%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.6%
EPS Growth %: +109.5%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.6%
EPS Growth %: +109.5%
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Activist investor Carl Icahn plans to put the icing his Dell, Inc. (Nasdaq: DELL) financing cake today when he signs for a $5.2 billion, six-year loan agreement.
No covenants are expected with the loan, according to the NY Post, but the case is only equal to about half of that Dell should have on hand is Icahn's bid succeeds.
Icahn's plan calls for the combination of Dell's cash and a receivables loan to pay out shareholders $14 per share for 60 percent of Dell. Combined with the outstanding shares of Dell, Icahn says his offer is valued at $17.32 per share.
Though he scrapped a similar plan weeks ago, Icahn recent held an investor call in which he said the PC business was far from dead. In addition, he said he was willing to put up some of his own funds to get the deal through.
No covenants are expected with the loan, according to the NY Post, but the case is only equal to about half of that Dell should have on hand is Icahn's bid succeeds.
Icahn's plan calls for the combination of Dell's cash and a receivables loan to pay out shareholders $14 per share for 60 percent of Dell. Combined with the outstanding shares of Dell, Icahn says his offer is valued at $17.32 per share.
Though he scrapped a similar plan weeks ago, Icahn recent held an investor call in which he said the PC business was far from dead. In addition, he said he was willing to put up some of his own funds to get the deal through.
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