Stand by...
" sacrificing short-term gains for long-term competitiveness and profitability. "
Icahn's next move is to have Mr. Dell committed. Obviously, to Icahn, this kind of talk is just incomprehensible gibberish!
Michael Dell has told employees at the struggling firm that he's "passionately committed" to getting his $24.9bn leveraged buyout deal through the shareholder vote and using R&D and acquisitions to become a more competitive firm. In an email to staff, also filed with the Securities and Exchange Commission, Big Mike said that …
...to endure the risks of the transformation and the likely near-term adverse effects on earnings,...
For Dell to have any sort of longevity as a corporation it has to undergo a transformation plan and that transformation plan will necessarily have "adverse effects." The sort of thing Wall Street doesn't like to see. So it would be better done as by a company not being publicly traded. It's also likely to be a High Risk venture. One that by the numbers only is likely to go bust and it's only the addition of experienced leaders who move it above a 33.3% chance of success.
Is Mike's offer a good deal? Hard to say. I'm reminded of the lines from Seven Samurai where the farmers offer a pittance for the high priced swordsman to defend their village. In the past he worked for larger sums that were a lot of money. But today that pittance is a lot of money so he will once again sell his sword for high price.