back to article Icahn offers to sweeten his Dell deal with warrants

If either Michael Dell or Carl Icahn wanted to win a deal to take control of Dell, the company, all they would have to do is pony up some of their own cash hoards and that would be that. But this is business, and the last thing in the world you do is spend your own money. In the latest move, corporate raider Icahn is sweetening …

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Unhappy

The Problem

Ichan and his ilk suck. They suck really hard, but people have been twisted into believing that making a lot of money proves you are somehow correct. That is simply unfortunate, especially now that such attitudes have become so prevelant in government as well as the commercial sphere. Having a lot of money proves you have a lot of money, nothing more, and people have forgotten that.

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Hopefully

Stockholders should be ignoring this bastard. Sure his offer is a no-brainer ... as in only those with no brains would want it.

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Holmes

I hope Icahn wins and LOSES

I hope that worthless vulture "wins" and completely destroys the value of Dell. Nothing personal against Dell the company or the man, but I want to see Icahn spend the rest of his life fighting lawsuits for his greed and incompetence and selfish bastardy.

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Re: I hope Icahn wins and LOSES

I like the sentiment, and would upvote you if the result of Icahn winning would not be lots of people losing jobs. If you can come up with a plan that avoids the huge amount of misery the objectionable bastard always inflicts on the companies he rapes and yet has the same effect of reducing the shithead to poverty and ridicule that we both want to see, I'm ready with the upvote button!

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Re: I hope Icahn wins and LOSES

"and would upvote you if the result of Icahn winning would not be lots of people losing jobs"

And how will it be different if Michael takes the company private? The whole plan for either side is to liquidate the retail PC making and selling business along with any other low margin stuff, to sack as many people in the rest of the business as possible, selling and leasing back any assets that the business still owns, whilst still issuing as many invoices for as much as possible. Having then pushed costs hard down to a non-sustainable level, whilst keeping revenues up in the shorter term, you try and flog the business (now laden with as much debt as you can load on it) to whatever mug can't see what's coming. If there's not enough corporate mugs with bulging wallets, then you can always try re-listing on equity markets.

It's not pretty, and its not nice to be on the recieving end, but all that's driving either side is the desire to enrich themselves, with the opportunity being created by choices unmade by the lacklustre directors of the company. Both Icahn and Dell the man are rich beyond the imagining of most of us, but still all they can think about is making more. Memo to both: You can't take it with you.

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Re: I hope Icahn wins and LOSES

Absolutely fair comments, Ledswinger. I should have phrased it differently, but I know that I can sometimes come across as a complete big-business-hating loon, so I responded to the original post as written.

It is a poor situation when the least-bad option is someone I wouldn't piss on if he was on fire. I suppose it is quite amazing how bloody awful Icahn is when he makes Dell look like the more humane option ...

What a mess.

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Re: And how will it be different if Michael takes the company private?

If Michael wins and takes the company private it possible about half the people would lose their jobs during renovations. It's possible that new positions on in the range of 50% to 150% would be gained after renovations are finished. Bought out stockholders will have cold hard cash.

If Krazy Karl wins and keeps it public, initially about half the people would lose their jobs during renovations. Meanwhile the company will be taking on debt, pumping up the price and Karl will cash out, making a tidy profit. Then the bills will come due, the company will be unable to pay and declare bankruptcy. At which point the remaining employees will be out of a job. Still invested retirees will see their life savings go up in a puff of smoke.

Yes, Michael will inflict some pain. But there is a chance it pays off. Karl will only inflict pain, and on a far larger number of people.

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These warrants will have an excise price of $20 per share

"By Icahn's calculations, the addition of warrants to his leverage recapitalization deal, which will keep Dell a private company, increases his offer for Dell to between $15.50 and $18 per share."

Icahn really thinks people are stupid. Yeah sure they often are, but anyone should see through this rather desperate attempt to "up the offer" without having to pay anything for it.

First of all the warrants are worthless if Icahn gets the company as share price is likely to dive and highly unlikely to ever reach over $20.

Secondly the offer to buy more stock at $20 is not exactly increasing his offer at all. The warrants would add value only if the share price was to significantly exceed the £20 within 7 years (ha, as if there is going to be any company (of any value anyway)) in 7 years if Icahn gets his mitts on it.

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