Ichan piles on the pressure in Dell battle

Activist investor Carl Ichan has teamed with another large shareholder in Dell to put forward an alternative to Michael Dell’s plans to take the struggling computer giant private in a $24.4bn (£16bn) deal.

In a scathing letter to the board, Mr Ichan and Southeastern Asset Management, who together control 13 per cent of Dell shares, said the $13.65 per share offer proposed by Mr Dell and the private equity group Silver Lake Partners was not in the best interests of shareholders. Instead, they have put forward a plan under which current investors would keep their equity position in the business, and be given an option to either receive $12 per share in cash or $12 in additional shares worth $1.65 apiece.

Mr Ichan and Southeastern said if the board turn down their offer and put Mr Dell’s proposal to a shareholder vote “we will work assiduously” to persuade investors to reject it and will put up 12 alternative directors.