Dell’s Results Were Not Enough, Icahn Wants to Know More
Dell (NASDAQ:DELL) reported first quarter results last Thursday, which showed just how deeply the shrinking personal computer market had hurt its business during the last three-month period. The PC manufacturer reported Thursday that profit dropped 79 percent from the year-ago quarter, and revenue dropped two percent to $14.1 billion, slightly above analysts’ expectations for $13.5 billion.
But Carl Icahn, who has made an offer for the company with Dell’s largest shareholder Southeastern Asset Management, wants more information on the state of the PC maker’s business. However, Reuters reported that Dell is not inclined to give Icahn any additional operational data. The special committee of the board of directors said in a letter on Monday that Icahn’s affiliates and representatives had made a number of requests for information, but the committee responded that “unless we receive information that is responsive to our May 13 letter, we are not in a position to evaluate whether your proposal meets that standard.”
On May 13, the committee asked Icahn and Southeastern for more details on their proposed offer. Earlier this month, they offered $12 per share in cash or additional shares to existing investors as an alternative to Michael Dell’s $24.4 billion bid to take the company private. Mr. Dell argued that the process of transitioning the company into a provider of enterprise computing services would be best done away from public scrutiny, a proposal that was met with displeasure from many shareholders.