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Carl Icahn vs. Dell Technologies’ Proposed Valuation

Carl Icahn believes Dell Technologies‘ tracking stock (DVMT) is worth about $144 per share, far higher than the $109 per share that Dell is offering to buy the shares as part of Michael Dell’s plan return the company to public markets.

In an open letter, Icahn says he will oppose Dell’s proposed DVMT stock buyout. Moreover, the activist investor says he owns more than 16.5 million DVMT shares, or roughly 8.3 percent of the stock.

Dell, meanwhile, is exploring a more traditional IPO as a potential contingency plan if shareholders don’t approve the DVMT buyout plan.

Dell Technologies Gains Momentum

Dell’s business appears to be gaining strength ahead of the potential return to public markets. The company reported stronger-than-expected Q2 fiscal 2019 revenues in September 2018, and raised its revenue outlook for the rest of this fiscal year. Among the key metrics to note: Revenue rose 18 percent to $22.9 billion vs. Q2 fiscal 2018.

That’s particularly impressive, considering so many customers are moving workloads from traditional data centers into public clouds like Amazon Web Services, Microsoft Azure and Google Cloud Platform.

ChannelE2E has reached out to Dell for comment about Icahn’s statement  and the company’s latest thinking about a shift to public markets.

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