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Dell stock rises as company agrees to show books to Carl Icahn

March 11, 2013|By Chris O'Brien
  • Michael Dell, chairman of Dell Inc., is fighting to keep his buyout bid moving forward.
Michael Dell, chairman of Dell Inc., is fighting to keep his buyout bid moving… (Paul Hilton / Bloomberg…)

Dell Inc. saw its stock jump 1.26% in midday trading on Monday after the company reached an agreement to let shareholder activist Carl Icahn see its books. 

Icahn Enterprises disclosed that it had signed a confidentiality agreement with Dell that will allow it to examine the company's financial records. The stock was up $.18 to $14.34.

Founder Michael Dell is leading a group of investors who have proposed taking Dell private. That group has offered $13.65 per share, valuing the deal at about $24.4 billion.

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But a number of large shareholders have balked, insisting that the offer vastly undervalues the company. 

Last week, Icahn sent a letter to the company revealing that he had accumulated a "substantial" number of shares, and proposing an alternative deal that would pay a large cash dividend back to shareholders. If his plan is not embraced, Icahn suggested the company allow shareholders to vote on replacing the board or face lengthy litigation. 

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