Dell Special Committee Backs Michael Dell Buyout Bid

DavidGilbert99 writes "In a surprising move, the special committee set up to decide which buyout offer was best for Dell has chosen to back the bid from founder Michael Dell, which promises the shareholders a smaller payday and will see him remain the head of the company." Their SEC filing on the matter indicates they are not confident that Icahn's counter-offer would actually provide the promised $12/share dividend.

Comments

seems reasonable

[Trepidity]

In particular, the deal comes with a "majority of the unaffiliated" vote requirement, meaning that for it to go through, a majority of shareholders other than Michael Dell must vote in favor. If that happens, i.e. a majority of non-Michael-Dell shareholders think he should be allowed to purchase and continue running the company, then there is no reason it shouldn't happen.

Re:seems reasonable

[AuralityKev]

But... Like... That's not NEARLY as sensational sounding. In fact, it seems goddamn downright reasonable and logical. That's not how I like my news!

Re:seems reasonable

[Bacon Bits]

Don't worry. Some irresponsible journalist will find the minority shareholders that don't want Michael Dell to buy the company out and get a nice story plastered all over Forbes and the Wall Street Journal. They'll probably spin it as a failure of the corporate model and that new, stronger laws should be passed to give shareholders more leverage.

Re:First Task

[KillaGouge]

I have always spoken with somebody in the United States that speaks English as a first language when dealing with Dell.

Re:First Task

[unixisc]

I agree. That's been my experience as well.

On TFA, it's good news - Dell will continue to do business as usual, but make better decisions since the Wall Street pressure to show good numbers every quarter will no longer be there. Dell can make good long term decisions even if it means bad short term setbacks, w/o being dinged for it by Wall Street. They can decide what sort of a company they want to be, which markets to play in and which to leave, and where they have a good future.

Cut the small stuff

[Deflagro]

I wonder if he will take drastic measures to cut home and small box support like IBM did. Dell is going to a services only model and big enterprise stuff where the pretty margin lives. It's hard to cut half of your income and survive Wall Street but I'm guessing that's the idea.

I have a feeling there will be pretty huge internal changes.

Re:Michael Dell should consult with Michael Dell

[unixisc]

As has been pointed out in the past, he said that in 1997 when Apple was floundering as a result of all the delays to Copland and struggling as a result of their inability to introduce an OS for the PowerMacs that were as modern as Windows 95 and the various Unices. It wasn't until 2001 - 4 years later - that Apple had OS X, which surfaced on PowerMacs. So in the context of all that, Dell had said, when asked, that he would be probably one of the worst people to lead Apple, and that if he got the job, that's what he'd do.

Another case of taking a statement out of context, and applying it ridiculously. Something similar that used to be done to the late Ken Olsen of DEC

Re:This would be an April 1 joke!

[Anonymous Coward]

Yep I see it too. Dell is moving to the enterprise and fast on its way to becoming a mini IBM where Apple is peddling gadgets and desperate for a new idea.

Re:First Task

[rezalas]

I worked for Dell tech support in Oklahoma City Oklahoma about 8 years ago. They have since expanded from one facility to three facilities in the area in addition to all the other US phone support campuses throughout the USA. They also provide support centers in South America and various parts of Europe and Asia to better serve their customers.