The Dell buy out war has become more interesting now it has been revealed that Carl Icahn, along with his chum Jefferies & Co., have secured billions in financing for their Dell bid.
The pair have managed to score $5.2 billion in loans from several banks and institutional investors,
Reuters cites sources who claim to have knowledge of the deals. Those funds will help Icahn and company finance their Dell buyout, it reports .
Icahn, in an open letter to Dell shareholders, said that financing commitments included $1.6 billion from Jefferies Finance.
According to Reuters, the $5.2 billion includes a six year loan worth $2.2 billion, as well as a 3.5-year loan for $3 billion.
It is all part of a much more cunning plan on Icahn’s part to essentially take control over the company and provide an alternative to Michael Dell’s $24.4 billion buyout deal that would take his company private.
Dell argued that Icahn has failed to provide any of the key provisions and mechanics of his deal, and had not got the readies.
If Icahn has got his paws on a spare $5.2 billion, he might be closer to satisfying some of the Dell board’s concerns.
Icahn has acquired 72 million Dell shares, making him the second-largest Dell shareholder.
Icahn apparently asked for a meeting with Dell’s special board committee after lining up the cash.