News Summary: Dell, Icahn agree on shares cap
News Summary: Dell, Icahn agree on a share ownership cap as board panel weighs takeover bids
BREATHING ROOM: Dell Inc. and Carl Icahn have agreed to cap his stake in the personal computer maker while a board committee considers competing takeover bids from the billionaire investor, a group led by CEO Michael Dell and buyout specialist Blackstone Group.
THE DETAILS: The Round Rock, Texas, company said Tuesday that its board approved the agreement with Icahn under which he and entities tied to him pledge not to buy up more than 10 percent of the company's shares. In exchange, Icahn is allowed to talk to other shareholders about putting together a superior proposal to a $24.4 billion buyout offer backed by company founder Michael Dell.
CARL'S CAVEAT: In a statement, Icahn stressed that he still retains the right to lead a shareholder rebellion against Dell's board if the company continues to favor the deal to sell to Michael Dell and an investment group led by Silver Lake Partners.
