5 Companies That Dropped The Ball This Week

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Icahn's Bid For Dell Comes Up Short

Dell's efforts to become a private company have appeared regularly in "5 That Dropped the Ball." But this week it's Carl Icahn and his alternative proposal that's apparently short of the mark.

A Dell special committee assigned to investigate offers for Dell shares said Icahn's leveraged recapitalization bid would lead to a $3.9 billion funding shortfall for the company, according to a filing with the Securities and Exchange Commission Wednesday. Icahn's offer, made in conjunction with Southeastern Asset Management, is an alternative to the $24.4 billion offer from Michael Dell, Silver Lake Partners and other financing partners to take the company private.

The special committee also argued that the Icahn-backed plan could damage Dell's reputation with employees, vendors and customers because it would hold a "significantly weaker profile than key enterprise peers," and be in a weak financial position to complete its strategy to become a more enterprise-focused company.


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