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What If the Shareholders Won’t Take the Money Back?

July 18th, 2013 - 11:59 am

Another roadblock on the way to privatizing Dell:

Michael Dell’s effort to lead a $24.4 billion buyout of the company he founded suffered a serious setback on Thursday after a special committee of Dell ’s board adjourned the shareholder vote on the deal to avoid losing at the ballot box.

The delay will give Michael Dell and his partner in the deal, private equity firm Silver Lake, until July 24 to secure additional shareholder support for their buyout, either by twisting some arms and beating the bushes for more votes, or increasing their $13.65-a-share bid for the PC maker. Michael Dell was reportedly about 150 million votes short of gaining approval for his transaction.

There’s never been a buyout this big before, and as I’ve said on a couple of occasions, it would be a helluva thing to see get pulled off.

But this is a pretty big bump, and I’m not sure there’s any getting over it. At some point Silver Lake is going to scream bloody murder, and Microsoft has already agreed to front more money than might be wise.

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Michael Dells should withdraw his offer, Dell's shares will plummet, he can buy the shares on the cheap.

1 year ago
1 year ago Link To Comment
Carl Icahn certainly seems to be interested too. These are some notes from a conference he spoke at yesterday.

Carl Icahn, Chairman, Icahn Enterprises
“…..On Dell: "I've been through a lot of these fights, but I've never seen anything like this."
Icahn is shouting out board guys by name. "It's really a travesty." Icahn has a CEO candidate in mind. "I've done this five or six times, finding the right guy for companies."
Wapner: Why do you really want Dell? Are you just trying to get Dell to bump his offer? Carl: "I don't buy great businesses, I don't pay retail. I buy businesses when they're not liked."
Icahn has no idea if Michael Dell will raise his bid "and to be honest I don't care, I want to own this company. The most money we've ever made is when we've controlled these companies. I can make a lot more owning this and I'd like to own it. I'm thrilled to own this company."
Icahn thinks this could go to a proxy fight, he thinks he can win one. "The board is a bigger problem than Michael Dell."…..”

Source: http://www.thereformedbroker.com/2013/07/17/notes-from-delivering-alpha-2013/
1 year ago
1 year ago Link To Comment
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