Icahn Enterprises

  • 08 Jul 2013 at 2:11 PM
  • M&A

Who Will Be Saddest About A Successful Dell Buyout?

With today’s ISS report endorsing the Michael Dell / Silver Lake buyout of Dell, and with the market up on the likelihood that the deal will go through when shareholders vote on July 18, I suppose it’s about time to start the postmortems. How do you see the winners and losers? The opposition, led by Southeastern Asset Management and Carl Icahn, look increasingly like goofballs. Like: here was Dell, with a cash takeover signed at $13.65 per share and no competing bidders in sight. Southeastern and Icahn teamed up delightfully to both sell low and buy high: Southeastern sold millions of shares at below the deal price,1 while Icahn’s average cost in his shares appears to be at least $13.70. Throw in his share of the proxy solicitation costs and he’s out about $12 million, plus whatever he paid for the rather uninspiring financing commitments for his hypothetical tender offer, though to be fair those seem to have been payable mostly to himself. Anyway here:2 [Update: wasn’t counting the June $0.08 dividend in his basis; if you include that then he’s basically breaking even rather than losing $12mm. Correct chart in the footnote.2A]

Is $12mm or so a lot for Icahn to lose? No obviously not. Read more »

  • 05 Jun 2013 at 10:48 AM
  • M&A

Dell Begs Shareholders To Put It Out Of Its Misery

I feel like it would be a useful, or at least entertaining, exercise to require every company, once a year or so, to give a presentation to its shareholders that is like “here’s why you should vote for an LBO of our company at a ~2% premium to the current stock price.” Even if there’s not an LBO in the offing, I mean; just as rhetorical practice. Like Buffett’s tame bear. Anyway Dell, which does have an LBO in the offing, filed its presentation today and it’s 39 pages of “boy do we suck”:

High fives all around, boys! Or take this slide:1 Read more »

My thinking on Carl Icahn changes day to day but my current model is that he is a man who after a long and successful career in money management retired in March of 2011 to spend more time on his hobbies. And that his hobbies are irritating Bill Ackman, hijacking public company M&A deals, and threatening his foes with “years of litigation.”1 I’ve got nothing against Bill Ackman, but otherwise that sounds like my dream retirement too.

We talked about Icahn’s Dell stake a little yesterday; I predicted that today Ackman would announce that Dell is a pyramid scheme, and I will award myself partial credit insofar as today a well-known short seller did come out calling Dell a bad and plummeting-cash-flow company, though not quite a pyramid scheme. But as for Icahn’s plans I’m still a bit lost, though his letter to Dell’s board has now been made public. This is the core proposal: Read more »

  • 14 Aug 2012 at 12:23 PM

Carl Icahn Gives Son Four Years To Prove Himself

Ten years ago, Carl Icahn hired his son Brett to be an analyst at Icahn Enterprises and the kid didn’t fuck anything up so he got to keep his job. Two year ago, Carl gave Brett and another employee, David Schechter, $300 million to invest under the “Sargon portfolio,” and the guys returned 96 percent (before fees) through June. Last month, Carl tossed the duo an additional $3 billion and a contract that expires in 2016, at which time Papa Icahn will either officially deem Brett a worthy successor or offer to serve as a reference when he looks for a new job. Read more »

Fortune: What is your favorite company? Read more »