Michael Dell Bumps Up Takeover Bid for Third Largest PC Maker, Asks Board to Change Voting Rules

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News Posted: Wed, Jul 24 2013 3:32 PM
Michael Dell may have known it would be a challenge to take back ownership of the self-named company he founded so many years ago, but he probably didn't anticipate that the process would drag on for as long as it has. Even more unsettling for Micheal and Silver Lake Partners, the investment group that's backing the founder, is that after all this time and energy spent, Dell could remain a publicly traded company when all is said and done.

To help make sure that doesn't happen, Michael increased his $24.4 billion takeover bid by another $150 million, however there's a caveat. He also wants the board to change the shareholder voting rules so that it will be easier for him to wrestle back control and take the company private.

Michael Dell
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According to Reuters, current voting rules state that a share not cast in the election counts as a "nay" vote. Michael wants to change the voting rules so that if the majority of votes cast by shareholders approves the deal, then it will go through, end of story.

"According to our latest tally, approximately 27 percent of the unaffiliated shares have not yet been voted. The presumption that these shares should be treated as if they had voted against the transaction is patently unfair," Michael Dell and Silver Lake said in a statement.

Michael's biggest hurdle is Carl Icahn, a billionaire businessman and major shareholder in Dell. Icahn, along with Southeastern Asset Management, offered to pay Dell's shareholders $14 per share while allowing them to hold onto their stock.
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Clixxer replied on Wed, Jul 24 2013 4:21 PM

Kinda dumb they set it up that if you didn't vote then its a "nay". So reason Michael Dell can't take the company back private if he has a reasonable offer.

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ajm531 replied on Wed, Jul 24 2013 11:59 PM

its like the rush song "freewill" says even if you dont decide you still have made a choice. But no the fact that it defaults to nay is kind of stupid. i hope mr. dell can take back his company.

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He wants to turn the company around by ignoring shareholder wishes and listening to consumers instead. I vote yay.

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Clixxer replied on Fri, Jul 26 2013 1:30 AM

MayhemMatthew:

He wants to turn the company around by ignoring shareholder wishes and listening to consumers instead. I vote yay.

Wouldn't be nice is all public companies did this? Wasn't worried about what the stock price was and what shareholders wanted but just, "Hey i'm gonna make you money for investing in my company but other than that GTFO!"

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