Carl Icahn agrees to limit Dell stake to under 10%

Billionaire investor Carl Icahn yesterday agreed to Dell's condition not to raise his stake in the PC maker to over 10 per cent, while continuing to find an alternative proposal to the $24.4-billion privatisation bid tabled by founder Michael Dell.

Texas-based Dell said that it has given Icahn a limited waiver to discuss a deal with other investors, while Icahn agreed not to enter into agreements with other shareholders to build more than a 15-per cent stake in the company.

In early February, Michael Dell had teamed up with Silver Lake Partners and tabled a $24.4-billion bid for the company (See: Dell sells itself to Michael Dell and Silver Lake in a $24.4 billion deal).

The agreed $13.65 a share deal has been opposed   by the company's largest shareholders as too low. Icahn and Blackstone Group have tabled competing indicative offers during the go-shop period.

The activist investor has made a $15 a share offer for 58.1 per cent of Dell, but is more keen to topple the board and block a sale in favour of a dividend.

''Granting the limited waiver to Mr. Icahn while capping his share ownership will maximize the chances of eliciting a superior proposal from Mr. Icahn, while at the same time protecting shareholders against potential accumulation of an unduly influential voting interest,'' the company said in its statement.