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