Dell: Icahn and Activist Southeastern Reportedly Consider Picking New Directors Together

Another billionaire running a failing company, another chance for two activist investors to transform the ailing business.

Billionaire Carl Icahn and Southeastern AssetManagement are reportedly mulling whether they should team up to chose new Dell DELL -0.19%directors, the latest chapter in the pair’s campaign against Dell–and the latest example of the two working together to shake up a company. A Southeastern spokesman declined to comment, following The Wall Street Journalthat broke the news.

The shareholders earlier this year publicly decried billionaire Michael Dell‘s plans for a $24.4 billionaire buyout with private equity firm Silver Lake Partners, arguing they badly undervalued the company. Icahn and Southeastern hope a fresh slate of directors could wreck Dell’s plan, forcing the PC-maker to consider other options, and show investors they can indeed vote down the proposal and choose a different path. They have until May 13 to nominate directors.

Under the proposed buyout, the billionaire founder and Silver Lake would pay $13.65 a share for the company. Southeastern, a $33-billion asset manager, believes the shares are worth much more, at least $20 or up.

Nominating new directors could wind up having no effect on the vote, which will likely happen before investors vote on the board. But if history is any guide, Dell and Silver Lake should worry. Icahn and Southeastern a year ago teamed up to recastChesapeake Energy CHK -1.59%. They succeeded. Out went half the board…followed closely by the company’s CEO, Aubrey McClendon.

(For more on Southeastern’s activism, see: Two Celebrated Investors Want To Fix Their Funds–And Chesapeake Energy. For more on Icahn, see: Carl Icahn Unleashed: Wall Street’s Richest Man Is On The Attack. Just Ask Michael Dell.)

Reach Abram Brown at abrown@forbes.com.

source

please give me comments thanks