Michael Dell Bumps Up Takeover Bid for Third Largest PC Maker, Asks Board to Change Voting Rules
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.
Image Source: Dell via Flickr
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.
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.
Image Source: Dell via Flickr
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.
