WHEN: TODAY, TUESDAY, JUNE 25TH
WHERE: CNBC'S "FAST MONEY HALFTIME REPORT"
Following is the unofficial transcript of breaking news from CNBC's Scott Wapner. All references must be sourced on CNBC.
SCOTT WAPNER: ALRIGHT, WELCOME BACK. WE HAVE SOME BREAKING NEWS RELATED TO CARL ICAHN AND DELL AS THE BACK AND FORTH BETWEEN MR. ICAHN AND DELL'S SPECIAL COMMITTEE CONTINUES. YESTERDAY, THAT SPECIAL COMMITTEE ONCE AGAIN SLAMMED THE ICAHN PROPOSAL, SAYING IT WAS "LACKING CREDIBILITY AND INCONSISTENT." A MAJOR REASON IS THAT THE COMMITTEE THINKS THE $5.2 BILLION MR. ICAHN IS RAISING, IS NOT ENOUGH TO PAY FOR HIS $14/SHARE TENDER OFFER, BECAUSE HE HAS TO PAY DELL DEBT THAT IS COMING DUE. I SPOKE WITH MR. ICAHN JUST A SHORT TIME AGO AND HERE IS WHAT HE TOLD ME. "TO ME, THE COMPANY SEEMS DESPERATE BECAUSE THEY KEEP OBFUSCATING THE FACTS," SAID MR. ICAHN. "THEY NOW SAY THE $5.2 BILLION WE ARE RAISING WILL NOT BE ENOUGH TO PAY A TENDER OFFER OF$14/SHARE. THE REASON THEY GIVE IS THAT WE WILL NEED THE MONEY TO PAY BACK THE DELL DEBT THAT'S COMING DUE – HOWEVER THE DEBT DOESN'T COME DUE FOR A YEAR AND A HALF." AS ONLY MR. ICAHN CAN, HERE'S WHAT HE SAID NEXT. "WHAT I LEARNED IN FINANCE 101, IS THAT BONDS HAVE AN EXPIRATION DATE FOR A PURPOSE. YOU DON'T HAVE TO PAY THEM BACK UNTIL THE EXPIRATION DATE IS REACHED. ADDITIONALLY, WHEN THE TENDER OFFER IS OVER, THE COMPANY WILL HAVE 5 BILLION IN CASH AND WILL EARN OPERATING INCOME OF $3 BILLION, ACCORDING TO DELL'S OWN CONSULTANT, BCG."AGAIN, SO YESTERDAY, THE SPECIAL COMMITTEE CRITICIZING MR. ICAHN, NOW CARL ICAHN RESPONDS TO THAT AS WE WATCH HOW THIS SITUATION IS GOING TO UNFOLD. BY THE WAY, THE SHAREHOLDER VOTE IS JULY 18TH. ONE DAY BEFORE THAT, CARL ICAHN WILL APPEAR AT OUR DELIVERING ALPHA EVENT IN NEW YORK CITY WHERE HE WILL SIT DOWN WITH ME FOR A KEYNOTE DISCUSSION WHICH WILL BE VERY INTERESTING GIVEN THE TIMING AND HOW ACTIVE CARL ICAHN HAS BEEN IN THE MARKETS IN A NUMBER OF NAMES THIS YEAR.
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