Deal or No-Deal: Michael Dell Makes Final Offer in Open Letter to Shareholders

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News Posted: Fri, Jul 26 2013 1:32 PM
Michael Dell is apparently finished with negotiations and has made a final offer to Dell's board of directors to take control of the company he founded. In an open letter to shareholders, Michael reiterated that taking Dell private is, in his opinion, still the right thing to do. You also get the impression that he's frustrated the process is taking so long.

"After one of the most thorough processes in history, the highest price that any of the parties was willing to pay was $13.65 per share," Michael stated in his letter. "Although no other party has offered to pay more than $13.65 per share, Silver Lake and I have now increased our offer to $13.75 per share, an increase to public shareholders of approximately $150 million, which is our best and final offer."

Michael Dell

Michael's original offer was worth $24.4 billion, and while Dell's board of directors originally approved the price by way of a unanimous vote, a few outspoken shareholders have held up the process. Billionaire businessman and shareholder Carl Icahn has been especially vocal and offered up an alternative transaction that would pay shareholders without requiring them to give up their stake in the company.

In his letter, Michael said the alternative proposals would be "destructive to the company" and that he does not and will not support any of them.

"The decision is now yours. I am at peace either way and I will honor your decision," Michael said. "Our agreement requires the vote of a majority of the unaffiliated shares -- your shares -- to approve the transaction"

The challenge Michael faces here is that of the voting process. As it currently stands, shares that don't vote automatically count as a "no" vote, and over 25 percent of the unaffiliated shares have not yet voted.
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Clixxer replied on Fri, Jul 26 2013 4:48 PM

Jesus just give the man back his company already. Crap like this is why the economy is tanking in my opinion. Michael Dell thinks he can make the company better going private and everyone is obviously making a bigger profit with him willing to increase his offer to just get those reluctant few on board.

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This is why I hate the idea behind shareholders and boards of directors. You should have complete control of your own company regardless of anything.

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Tyotukovei replied on Fri, Jul 26 2013 10:26 PM

The only way that you can have people invest in your company any substantial amount and not have any say over what happens in it right now is Kickstarter. Other than that, if you give your money to somebody, you usually want something out of it. I do agree with you that it ruins companies.

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Clixxer replied on Fri, Jul 26 2013 10:50 PM

Well I get the whole investment thing but you can do like Michael Dell did and got an investment firm. I have no idea what the split % will be but that doesn't require shareholders. I get some things its to risky but you can say Dell to almost anyone in America and they know exactly who you are talking about so its not like this is a noname company.

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Fuck the shareholders, those people are what cause bad products to be released. Dell could turn Dell around just by taking it private and listening to consumers. Getting back onto the cutting edge of server hardware!

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