Icahn's Challenge to Dell Deal Dies With Judge's Ruling
NEWS ANALYSIS: A Delaware court’s ruling and the renegotiated terms of the bid clear the way for Michael Dell to buy the company and take it private.Michael Dell should be looking at a clear runway to buying his namesake company and taking it private, barring any unforeseen problems. Between the agreement he reached with Dell’s board of directors earlier this month and the recent court ruling against activist investor Carl Icahn, Michael Dell will most likely see his $25 billion bid to buy the PC maker accepted by most shareholders when they vote Sept. 12, a proposal that Icahn has worked for months to derail. Icahn’s last credible shot at stopping the deal ended Aug. 16, when Delaware Chancellor Leo E. Strine Jr. rejected his request to expedite the lawsuit in which he claimed the board’s Special Committee was wrong to renegotiate the terms of the deal with Michael Dell, as well as Icahn’s attempts to have the investor vote on the deal run the same day as the company’s annual shareholders’ meeting. Strine instead sided with the Special Committee, saying the group appointed by the board to deal with Michael Dell and financial backer Silver Lake Partners had done a good job negotiating the process. The chancellor’s ruling essentially did away with Icahn’s only real chance to stop the proposal.
“Home free—maybe I wouldn’t quite use that term yet,” Roger Kay, principal analyst with Endpoint Technologies Associates, told eWEEK. “But as far as major obstacles [still in the way], I don’t see that.”