logo
Share SHARE
FONT-SIZE Plus   Neg

Michael Dell, Silver Lake Decide Not To Increase Buyout Offer For Dell: Reports

Michael Dell, founder and Chief Executive Officer of Dell Inc. (DELL: Quote), and private equity firm Silver Lake Partners have decided not to increase their $24.4 billion offer to take the company private, according to several reports, citing people familiar with the matter.

However, the special committee of Dell's board was not informed any such decision had been made, the reports said.

Mr. Dell and Silver Lake are ruling out an increase in offer price due to the $13.65 per share offer they made in February represents a fair and significant premium to where the stock would trade if the deal fell apart, the reports said quoting the people.

Friday's 2.10% drop to $13.03, the lowest level since Mr. Dell's planned $24.4 billion buyout was first announced, came ahead of a key weekend for the deal when at least one influential shareholder advisory firm was expected to issue its recommendation to shareholders.

The buyout group is not confident it will earn a positive recommendation from proxy-advisory firm Institutional Shareholder Services Inc. and believes a slight bump in price may not be enough to overcome a negative view from ISS, the reports said citing one of the people.

Dell also said in a regulatory filing on Friday that there's a "substantial downside risk" to shareholders if they reject Michael Dell's transaction. The $13.65 per share offer implies a premium to Dell shares, based on Hewlett-Packard Co.(HPQ: Quote).

On Monday, Activist investor Carl Icahn said that he raised $5.2 billion to finance his plan to recapitalize struggling personal computer maker Dell and urged the special committee of the company's board to hold a direct, face to face meeting with him.

Icahn and Southeastern Asset Management are trying to block Mr. Dell and Silver Lake Partner's $24.4 billion bid to take the company private.

At May-end, Dell's special committee had unanimously recommended that stockholders vote to approve the company's merger deal with Michael Dell and Silver Lake, at a special meeting of stockholders to be held on July 18. The deal was initially agreed in February.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Burger chain Shake Shack Inc. said late Thursday that it has priced its initial public offering of 5 million Class A shares at $21 per share, which is above the previously estimated price range of $17 to $19 per share. The shares are expected to begin trading on the New York Stock Exchange on Friday, January 30 under the ticker symbol "SHAK." Google reported a higher fourth-quarter profit, driven by a 15 percent increase in revenues and one-time gains from the sale of Motorola Mobile business, somewhat offset by stock-based compensation expense and foreign exchange losses. Quarterly earnings and revenue missed Wall Street estimates, as ad revenues came under pressure. Online retailer Amazon.com, Inc. said Thursday after the markets closed that its fourth quarter fell 10.5% from last year, as higher expenses more than offset a 15% increase in sales. However, the company's quarterly earnings per share came in well above analysts' expectation, but its quarterly sales fell short of analysts' forecast.
comments powered by Disqus
Follow RTT