Dell Saga Nearing an End? Board Asks Shareholders to Vote on Buyout Offer
What was supposed to be a relatively quick and easy buyout of Dell, the world's third largest PC vendor, has turned into a drawn out dispute over the company's value, with Carl Icahn having emerged as one of the loudest voices of dissent. Perhaps fed up with the whole ordeal, Dell's board of directors, who unanimously voted in favor of Michael Dell's original $24.4 billion buyout offer, is urging shareholders to put the matter to a vote
According to Reuters, Dell's board stated in its letter to shareholders that Michael's proposal "is the best alternative available...it offers certainty and a very material premium over pre-announcement trading prices." The letter didn't mention Icahn's alternate proposal.
While Michael Dell and investment partner Silver Lake Group want to purchase the PC maker outright in a deal that would give shareholders $13.65 per share, Icahn in recent weeks proposed a $21 billion cash package that would pay shareholders $12 per share while also allowing them to keep their stock.
Company co-founder Michael Dell is eager to regain control of Dell and take it private, thus allowing him to make business decisions without having to answer to a board or shareholders every step of the way.
According to Reuters, Dell's board stated in its letter to shareholders that Michael's proposal "is the best alternative available...it offers certainty and a very material premium over pre-announcement trading prices." The letter didn't mention Icahn's alternate proposal.
While Michael Dell and investment partner Silver Lake Group want to purchase the PC maker outright in a deal that would give shareholders $13.65 per share, Icahn in recent weeks proposed a $21 billion cash package that would pay shareholders $12 per share while also allowing them to keep their stock.
Company co-founder Michael Dell is eager to regain control of Dell and take it private, thus allowing him to make business decisions without having to answer to a board or shareholders every step of the way.
