WWII: Carl Icahn Declares War on Michael Dell’s Planned Return to Public Markets

Billionaire activist investor Carl Icahn comes out against Michael Dell and the private equity firm Silver Lake $21.7 billion VMware buyout offer.

Icahn now VMware’s second-largest shareholder, said Monday that he has upped his stake in the tracking stock to more than 8% – or over $2 billion. But Dell is “manipulating” shareholders of VMware into accepting his buyout offer.

In a scathing letter, Ichan bashing the proposed buyout by Dell that could make the computer giant publicly traded once again.

Icahn claimed Dell and Silver Lake are using “scare tactics,”. They “literally stealing” $11 billion from shareholders in a plan to take the computer giant publicly traded once again.

In an interview on CNBC’s “Halftime Report.” he said: “You’ve got two guys that are going to make $11 billion. Eleven billion dollars for doing nothing. It’s unrivaled even on Wall Street’s standards.”

In the letter published online Monday Icahn said: “While we have unearthed many undervalued opportunities in the past, very few companies compare to the current opportunity and the massive undervaluation of DVMT – which exists in plain sight for all to see.”

Icahn said in a letter included in a securities filing that the deal in its current form values the company at closer to $94. But the value of VMware should be $144.

Ichan’s calculations show VMware could generate in free cash flow over “a few years,” a value of more than $250 a share.

“VMware holders shouldn’t agree to the deal unless it contains a very, very substantial increase,” Icahn said. “I intend to do everything in my power to STOP this proposed DVMT merger. In my opinion, it is better to have peace than war. I still enjoy a good fight for the right reasons, and in the current situation, I do not see peace arriving quickly!”

Ichan added: “Clearly Michael Dell and Silver Lake take us for fools if they think that we would exchange this future value potential for only $94 per share. I intend to do everything in my power to STOP this proposed DVMT merger.”

Read All About the Battle over Dell inc. : 

• Michael Dell Looks Ready To Cross The Finish Line On September 12th With Bid To Privatize Dell Inc
• Michael Dell’s $24.8 Billion Offer To Privatize Dell Inc Finally Goes To Shareholder Vote On September 12th
•  After Delaware Legal Ruling Icahn Throws In The Towel In Dell Fight
• Behind The Scenes Maneuvers Continue As Carl Icahn Tries To Outlast Michael Dell
• Dell Inc. Cuts Revised Deal with Founder Michael Dell and Silver Lake Partners

• To Vote or Not to Vote That is Certainly The Question for Dell Shareholders Unless the Company Postpones The Vote One More Time
• Requiem Or Prologue For Dell ? Shareholders Prepare To Vote
• Dell : The Dramatic Shareholders Meeting May Be Delayed For The Second Time
• Dell Deal Delayed
• It’s Getting Messy At Dell As Carl Icahn Takes The Battle Down To The Final Whistle
•  Endgame Arrives For Dell’s Buy Out Bid: As Usual The Arbs Hold The Cards
•  Endgame Arrives For Dell’s Buy Out Bid: As Usual The Arbs Hold The Cards
•  Carl Icahn attacks the Dell takeover struggle, but from a different angle
• Carl Icahn Reportedly Building A $7 Billion War Chest To Finance His Dell Bid
• Carl Icahn attacks the Dell takeover struggle, but from a different angle
• Dell Deal With Michael Dell Goes Live Shareholders To Vote In July
• The Dell Deal Suddenly Looking Less Attractive
• Both Michael Dell And Fidelity Want To Know What Makes Rami Run?
•  Situation At Dell Becomes More Interesting As The Blackstone Group Pull Out Of The Bidding
•  Who is Rami Levy and why investors love him
• Both Michael Dell And Fidelity Want To Know What Makes Rami Run?
•  Carl Icahn Cuts Dell Some Slack As He Agrees To An Investment Cap
•  Carl Icahn Continues To Make Waves- But This Time Its Sound Waves
• Update: It Just Got More Crowded At Dell As Stephen Schwarzman’s Blackstone Joins Carl Icahn In A Bidding War.
• Icahn Set To Put A Spoke In The Wheel Of Michael Dell’s Dream Buyout