Dell’s board wants Carl Icahn to play nice.
The troubled PC maker said yesterday it would reimburse the billionaire investor for the costs he incurs exploring a bid for the company.
In exchange, however, Icahn must promise not to launch a proxy fight or haul the company to court.
Icahn, along with buyout shop Blackstone Group, has indicated he is willing to explore a rival bid for Dell. Dell struck a similar agreement with Blackstone to cover its estimated $25 million to $30 million in due diligence expenses.
“We are willing to provide you with the same expense reimbursement that has been made available to the other two bidders if you will commit contractually to work within our process,” a special board committee wrote in a letter to Icahn last night in response to his request that Dell cover his due diligence costs.
“But we are not prepared to do so as long as you, unlike them, reserve the right (and continue the threat) to subvert it with a proxy fight, litigation and other tactics that would prolong the instability and uncertainty facing the company,” the letter said.
Icahn has criticized a $24.4 billion takeover offer from founder Michael Dell and private-equity firm Silver Lake as too low.