Maneuvering Continues For Control of Dell

An anonymous reader writes "Just as Carl Icahn's months-long, high-profile bid for control of Dell seemed to have run its course, came the announcement that Dell's board had postponed a shareholder's vote on the bid from Michael Dell and investment firm Silver Lake Partners, to take private the company that Dell had started in a University of Texas dorm room twenty nine years ago. The postponement indicated that Dell was not confident that their $24.4 billion ($13.65 per share) deal had the necessary votes. Icahn and his main ally, Southeastern Asset Management, claim that the proposed deal undervalues the company and its upside potential; Icahn's latest proposal is to keep the company public, but to offer $14 per share plus upside warrants, for every share tendered by stockholders. The latest wrinkle is apparent tension within the Dell/Silver Lake team; Silver Lake reportedly feels entitled to the $450 million buyout fee specified in the deal's language, if any alternative bid from Icahn succeeds within a year; Dell and the board feel that Silver Lake would only be entitled to expenses in that case, perhaps amounting to a few tens of millions USD. The Bloomberg story also reports that Michael Dell has at times been unable to reach his Silver Lake counterpart (a longtime friend) on the phone to discuss possibly sweetening the bid."

Comments

What I would do if I was in charge

[arcite]

I'd shut it down and give the money back to the shareholders.

Put that comment down

[tuppe666]

I'd shut it down and give the money back to the shareholders.

Ironically this was from a time when Apple had failed while wintel had won. Leaving Jobs begging to Microsoft resulting in a settled lawsuit a few million in the bank...and a crippled office port. It only sounds stupid in retrospect because Apple from that dark time (A time I repeatedly point out its returning to), by reinventing itself, doing exciting things, leading in new markets. It became something different...better.

The World has changed since then Wintel are bleeding the PC industry dry with Microsoft & Intel cashing on on 70% gross profit margins...in the Desktop Apps(The Desktop destroyed by Microsoft...living on only in name...Windows) market that is not sustaining it...and Dells slice of the pie (and the Pie) is shrinking...The Days of Dell earning more money than Microsoft are long gone.

This move is about Dell reinventing itself doing exciting things, leading in new markets without the quarterly shareholder distractions (allegedly) , Something Apple is going to learn from in 2 days time.

Hopefully they will have the good sense not to be remain reliant on Wintel.

Re: Avarice

[jcr]

I think you guys have just invented financial homeopathy.

-jcr