Carl Icahn retaining proxy vote option, rival bid in battle for Dell

Corporate raider Carl Icahn is refusing to give up the right to a proxy vote on a large once-off dividend from Dell and is continuing to threaten to launch a rival bid as the battle for ownership of computer giant Dell intensifies.

Reuters reports Icahn, who owns around $US1 billion in shares of the computer giant, had asked Dell’s board of directors to reimburse the cost of conducting due diligence on the company as had happened with rival bidders Blackstone Group and a consortium including Silver Lake Capital, Microsoft and Michael Dell.

The board responded by stating they would consider the request for the reimbursement on the condition that Icahn drops his threats of a proxy fight over an extraordinary dividend, as well as his rival bid for 58% of the company and threats of “years of legal action”.

However, Icahn is refusing to accept the board’s offer.

“No matter how much they are willing to pay to reimburse me I’m not going to give up the right to put in a bid that I think will be compelling to shareholders, even if the board doesn’t like it,” Icahn said.

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