Carl Icahn says he'll sweeten offer for Dell on Friday

The activist investor plans to augment his takeover proposal with warrants to let shareholders acquire additional stock should Dell shares climb to "around $20."

Dell headquarters. Dell

Activist investor Carl Icahn, who is waging a battle for control of Dell with founder and CEO Michael Dell, said Thursday he will increase his offer for the PC maker on Friday by adding warrants.

Icahn's revised proposal will be "vastly superior" to Michael Dell's $13.65-a-share offer to take the company private, Icahn told Bloomberg Television. "We're going to come in and add into the package -- which we think is superior already."

Icahn, who opposes a plan to take the company private proposed by company founder Michael Dell and Silver Lake Partners, said he'll augment his $14-a-share offer with a warrant -- an options-like security issued by the company -- that shareholders could use to acquire additional stock should Dell shares climb to "around $20."

"That will make it definitely superior," Icahn said. "We think, after talking to a number of shareholders, that this should win the day for us. But you can't be sure, obviously."

CNET has contacted Dell for comment and will update this report when we learn more.

Icahn, who owns 8.7 percent of Dell stock, argues that the privatization plan undervalues the company and proposed last month that Dell buy back 1.1 billion shares at $14 per share . After earlier skepticism about Icahn's proposals, the mood changed after the billionaire announced he had secured $5.2 billion in loans from several banks and institutional investors to finance his Dell buyout proposal.

The privatization proposal won the endorsement of Institutional Shareholders Services, an influential firm that advises public company shareholders on proxy voting and corporate governance. Dell shareholders are expected to vote on Michael Dell's $24.4 billion proposal next week.

 

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