Michael Dell Revises Buyout Offer After Board Agrees to Change Voting Rules
Michael sweetened his offer by increasing the purchase price by a dime from $13.65 per share to $13.75 per share, providing a $0.13 per share dividend to shareholders, and a guarantee that the third-quarter dividend of $0.08 per share will be paid at or before closing. All of this equates to at least an additional $350 million over Michael's original $24.4 billion buyout offer.
Not for nothing, Michael softened his stance on terms of the buyout offer in exchange for Dell's board agreeing to change its voting rules. Prior to the rule changes, absentee votes were counted as "no" votes, with over 25 percent of the unaffiliated shares not voting. This proved a significant hurdle in getting the deal approved.
"In return for the increased value to shareholders, the voting standard has been modified such that the improved transaction will require approval by the majority of disinterested shares actually voting on the matter," Dell said.
The new vote is scheduled to take place on September 12, 2013. It's likely to go in Michael's favor, though outspoken investors and billionaire businessman Carl Icahn is likely to challenge the vote in court.