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Dell board wants more details on Icahn bid

Dell Inc.’s board of directors wants more information on investor Car Icahn and Southeastern Asset Management’s $21 billion cash offer for the company.

The offer proposes to give stockholders $12 per share as well as the option to keep their stock.

In a letter to Icahn on Monday, a special committee of the board said it wanted to know if he intended to make “an actual acquisition proposal that the Board could evaluate” or was it an alternative offer in case the earlier bid by the company’s founder Michael Dell and private equity firm Silver Lake is not approved. The also wanted more information the nature of the relationship between Icahn and Southeastern.

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Michael Dell and Silverlake made a $24.4 billion bid for the company. They want take Dell private for $13.65 per share. However, stockholders, including Southeastern and T. Rowe Price say their offer undervalues the company.

In its letter to Icahn, the committee said it also wanted to know how he would finance his offer as well as his contingencies “if cash on hand or stockholder rollovers are less than anticipated.”

The committee also wanted to know the makeup of Icahn’s senior management team and his strategy and operating plan.

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