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Michael Dell Reaches Deal With Committee With Special Dividend - Quick Facts

The Special Committee of the Board of Dell Inc. (DELL) announced Friday that it has entered into a revised definitive merger agreement with Michael Dell and Silver Lake Partners that increases the aggregate value to unaffiliated shareholders by at least $350 million.

The buyout group has increased the purchase price to $13.75 per share from $13.65 per share. The revised merger agreement also provides for payment of a special dividend at or before closing of $0.13 per share. The agreement also guarantees that the third quarter dividend of $0.08 per share will be paid at or before closing.

The Committee said that the effect of the guarantee of the third quarter dividend is to potentially increase the total consideration payable to unaffiliated stockholders by an additional $120 million depending on whether the closing would otherwise have occurred prior to the record date for that dividend.

In return for the increased value to shareholders, the voting standard has been modified such that the improved transaction will require approval by the majority of disinterested shares actually voting on the matter.

The committee also said it intends to establish a new record date of August 13, 2013 for shareholders eligible to vote on the transaction at the Special Meeting which will be adjourned from August 2, 2013 to September 12, 2013 at 9:00 a.m. Central Time.

The amended transaction also includes a reduction of the breakup fee that would be payable in the event the merger agreement is terminated and within 12 months thereafter the Company effects a recapitalization transaction that does not result in there being an absolute majority stockholder of the Company. That fee is reduced from $450 million to $180 million.

Dell's Special Committee and the independent members of Dell's Board of Directors have approved the revised definitive merger agreement.

by RTT Staff Writer

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