A Dell special committee has rejected a new proposal from a key shareholder Carl C. Icahn, and said it will continue to support the proposal by founder Michael Dell and private-equity firm Silver Lake Partners to take the company private.
Icahn's proposal in its present state is not a transaction that the committee could endorse and execute as "there is neither financing, nor any commitment from any party to participate, nor any remedy for the company and its shareholders if the transaction is not consummated," the special committee of the board said in a statement Tuesday. The committee was set up in August 2012 after the plans for taking the company private were revealed.
The proposal from Icahn does not adequately address the liquidity issues and other risks that were previously highlighted by the committee, it said.
Michael Dell and Silver Lake Partners made an offer for Dell in February that aims to take the computers and services company private in a US$24.4 billion deal. The proposal offers to pay $13.65 per share in cash.