After two days of gains, the major indexes are little changed this morning as investors await the outcome of the Federal Open Market Committee’s June policy meeting this afternoon. The S&P 500 and the narrower, price-weighted Dow Jones Industrial Average (INDEXDJX:.DJI) are down 0.17% each as of 10:05 a.m. EDT.
The macro view: Fed day is here at last!
The time for tea leaves, chicken bones, and tarot cards is over. After all the hullabaloo, the FOMC’s June policy meeting draws to a close today, and we’ll soon have their statement and a press conference by the head honcho himself, Dr. Ben Bernanke.
None of the talking heads know what the outcome of the meeting will be; my best guess is that the Fed will try to appease the market by emphasizing the conditions that remain to be met before it can begin reducing the pace of its $85 billion monthly asset purchases. If it takes a more hawkish stance, expect some afternoon volatility.
The micro view: Icahn’s zombie offer for Dell
Legendary activist investor Carl Icahn is proving to be a thorn in the side of Silver Lake Partners and Michael Dell as they seek to take Dell Inc. (NASDAQ:DELL) public: Each time Dell Inc. (NASDAQ:DELL)’s board rebuffs Icahn, he comes back with a new offer. This time, he is offering to pay $14 per share for 62% of the company.
Southeastern Asset Management, Dell Inc. (NASDAQ:DELL)’s largest shareholder until Tuesday, appears to have thrown in the towel, agreeing to sell half its stake to Icahn (though it will nonetheless vote against the $13.65 per-share buyout from Silver Lake and Michael Dell on July 18). Southeastern had previously teamed up with Icahn on an alternative proposal.
Dell Inc. (NASDAQ:DELL)’s board was not impressed, pointing out that this latest offer is not fully financed — just like the two offers that preceded it. The zombies are always killed at the end of the movie, and I suspect Icahn’s aspirations will share the same fate on July 18. The market thinks so, too: Excluding a spike yesterday, it’s been two months since Dell Inc. (NASDAQ:DELL)’s stock last traded above Silver Lake and Michael Dell’s $13.65 per-share offer price. The duo are no heroes, but their deal will get done.
The article Icahn’s Zombie Offer for Dell Will Die originally appeared on Fool.com.
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