Items tagged with Carl Icahn
Billionaire investor and activist shareholder Carl Icahn didn't blink twice at Apple becoming the world's first $700 billion company. In fact, he thinks the Cupertino outfit is worth nearly twice as much. According to Icahn, Apple's stock should be trading at 20 times earnings per share -- with net cash of $22 per share, that comes to $216, well above the $126.45 price it's going for now. And at $216 per share, Apple would be worth a staggering $1.3 trillion. "This is why we continue to own approximately 53 million shares worth $6.5 billion, and why we have not sold a single share," Icahn stated in a letter to his Twitter followers. He went on to add that if Apple introduces a TV next year or...
Read more...
Take-Two Interactive Software, Inc. is forging ahead without further guidance or input from billionaire investor Carl Icahn, who agreed to sell back his 12.02 million shares in the company at yesterday's closing price of $16.93 per share. That works out to around $203.5 million, which Take-Two will fund from its cash reserve and cash equivalents on hand, the company announced. "This share repurchase reflects our confidence in the company’s outlook for record results in fiscal 2014 and continued non-GAAP profitability every year for the foreseeable future," said Strauss Zelnick, Chairman and CEO of Take-Two. "With our ample cash and strong expected cash flow, we are able to pursue a variety...
Read more...
Barring anything unexpected, Michael Dell is almost assured to gain control of the company he founded and take it private following a shareholder vote later this week. Michael had originally proposed a $24.4 billion buyout offer for the world's third largest PC maker, but things hit a snag when some began to question Dell's overall value. Billionaire investor and Dell shareholder Carl Icahn emerged as one of the most outspoken opponents of the deal, threatening legal action and even putting together an alternative package that would pay shareholders a dividend while keeping the company public. Michael ultimately responded by sweetening the offer with an increase in the purchase price from $13.65...
Read more...
Carl Icahn, the billionaire businessman who's been a thorn in Michael Dell's side as he attempts to acquire the company he founded and take it private, also owns a "large" stake in Apple. He revealed as much on his Twitter account, adding that he recently spoke with Apple chief Tim Cook, sharing his thoughts about the company's current financial position. "We currently have a large position in Apple. We believe the company to be extremely undervalued," Icahn stated in a Twitter post. "Spoke to Tim Cook today. More to come. A short while later, Icahn posted a follow-up tweet indicating he had a "nice conversation" with Cook and that he shared his "opinion that a larger buyback should be done now."...
Read more...
It wasn't that long ago when it seemed like Michael Dell was well on his way to acquiring the company he founded. Michael, along with Silver Lake Partners and an investment from Microsoft, put together a $24.4 billion buyout bid that was unanimously approved by Dell's board of directors. The deal would pay shareholders $13.65 per share, and then Michael and his company would ride off into the sunset, going private along the way. Billionaire businessman and Dell shareholder Carl Icahn has been one of the most outspoken opponents of the deal, claiming that Michael's offer severely undervalues the world's third largest PC maker. Icahn offered an alternative deal that was initially shrugged off by...
Read more...
Billionaire businessman Carl Icahn may ultimately fail in preventing Michael Dell from acquiring the company he founded and taking it private, but he isn't going down without a fight. Icahn keeps coming back to the table with new proposals, and the latest development is that he's seeking a meeting with Dell's board of directors after lining up a $5.2 billion loan. "With that we put an end to the unwarranted speculation by Dell that our money would not be available," Icahn stated in a letter, according to Reuters. Icahn, along with Southeastern Asset Management, has offered to pay Dell's shareholders $14 per share while allowing them to hold onto their stock. Michael, meanwhile, is trying to acquire...
Read more...
A special committed formed by an independent group of directors weighed in on the situation with Dell and the two offers on the table, one a buyout bid by company co-founder Michael Dell and the other a dividend payment by activist investor Carl Icahn. The committee's suggestion? Take Michael's money and run. Michael, along with private equity firm Silver Lake Partners, originally proposed a $24.4 billion buyout of the world's third largest PC maker with the intention of taking the company private. Under that scenario, Microsoft would kick in a $2 billion loan to help seal the deal. Dell's board of directors unanimously voted in favor of the deal, which would pay shareholders $13.65 per share,...
Read more...
What was supposed to be a relatively quick and easy buyout of Dell, the world's third largest PC vendor, has turned into a drawn out dispute over the company's value, with Carl Icahn having emerged as one of the loudest voices of dissent. Perhaps fed up with the whole ordeal, Dell's board of directors, who unanimously voted in favor of Michael Dell's original $24.4 billion buyout offer, is urging shareholders to put the matter to a vote According to Reuters, Dell's board stated in its letter to shareholders that Michael's proposal "is the best alternative available...it offers certainty and a very material premium over pre-announcement trading prices." The letter didn't mention Icahn's alternate...
Read more...
Three months ago, Dell's Board of Directors unanimously approved a merger agreement under which company founder Michael Dell and investment firm Silver Lake Partners would acquire the PC maker for $24.4 billion. Michael's plan is to take Dell private so he can run the company as he sees fit without the pressure of answering to shareholders each quarter, and while that still may happen, it's not a foregone conclusion. One person who's been aggressively opposed to the deal since the beginning in Carl Icahn. Mr. Ichan is viewed as the last major threat to the deal ever since the New York-based investment firm Blackwater Group LP pulled out of its pursuit of Dell by withdrawing an alternative offer...
Read more...
Spooked by a recent report that global computer shipments are down nearly 14 percent in what might be the worst contraction ever in the PC market, New York-based Blackwater Group LP has pulled out of the running in its pursuit of Dell. By stepping aside, Michael Dell and private equity partner Silver Lake are almost assured of taking over the company. Citing un-named sources, Reuters reports that another factor leading up to Blackstone's withdrawal is a lower earnings forecast by Dell's bean counters. Dell's operating income dropped from $3.7 billion to $3 billion in the current fiscal year, and that's apparently too large of a discrepancy to ignore. Image Source: Flickr (Axel Schwenke) Blackstone's...
Read more...
It's tough to say what kind of resistance Michael Dell anticipated when decided to acquire the company he founded for $24.4 billion. Under terms of the deal, which was unanimously approved by Dell's Board of Directors, Mr. Dell and his investment partners will pay shareholders $13.65 per share in cash. That figure represents a 25 percent premium over Dell's closing share price of $10.88 on January 11, 2013, the last trading day before rumors surrounding the deal were first published, but not everyone is happy with the figure. Days after the deal was announced, Southeastern Asset Management wrote a letter to the board stating Dell's value is closer to $24 per share. Based on that belief, it deemed...
Read more...
