Reuters: Icahn Sweetens Bid for Dell by Adding Warrants

Billionaire investor Carl Icahn and Southeastern Asset Management Inc sweetened their bid for Dell Inc by adding warrants they say would increase the value of the offer to a range of $15.50 to $18.00 per share from $14.00, Reuters reported.

(Reuters) – Billionaire investor Carl Icahn and Southeastern Asset Management Inc sweetened their bid for Dell Inc by adding warrants they say would increase the value of the offer to a range of $15.50 to $18.00 per share from $14.00.

Under the new offer, Dell shareholders would get $14.00 per share and a warrant for every four shares held. The warrant would entitle the holder to buy Dell shares for $20.00 each within the next seven years.

The move is Icahn’s latest effort to block a $24.4 billion buyout offer, or $13.65 per share, from company founder Michael Dell and private equity firm Silver Lake.

Dell shareholders will vote on the offer July 18.

Michael Dell has said the company’s shift from a computer maker to a provider of enterprise computing services is best done away from public scrutiny.

Icahn has argued that Michael Dell’s offer undervalues the PC maker.

Dell shares were up 0.2 percent at $13.37 in early Nasdaq trading.