Thanks for reminding me about that. It had completely fallen off my radar screen. In short, the bid is sort of in limbo. The last time I checked, Dell’s (with ally Silver Lake) offer had been upped to $13.75 a share from $13.65. But arch-nemesis Carl Ichan isn’t a fan of the deal:
Icahn argues that the original deal undervalues the company. Icahn, who along with his partners owns a 13 percent stake in Dell, partnered with Southeastern Asset Management to offer shareholders $14 per share in cash, as well as a single warrant for every four shares they sell. That warrant can be redeemed at anytime in the next seven years for one Dell share at $20.
Another data point. The battle lines are being drawn:
A special committee appointed by Dell’s board suggested that Icahn’s deal was not in the best interests of the company and endorsed the founder’s previous offer. However, major brokerage houses, including T. Rowe Price, that own Dell shares, have come out against the Michael Dell deal. And with Icahn continuing in his bid to convince other shareholders that his deal is superior, it wasn’t clear whether Silver Lake and Michael Dell could get enough votes to move forward on their original proposal.
Also worth noting, the special vote that would decide who wins has been pushed to August 2nd. Perhaps in a sign that Dell doesn’t have the numbers to make this happen. So, I would check in later this week to see things go “boom.”
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Hey IT Nerd! What Happened To Michael Dell’s Bid To Take Dell Private?
Thanks for reminding me about that. It had completely fallen off my radar screen. In short, the bid is sort of in limbo. The last time I checked, Dell’s (with ally Silver Lake) offer had been upped to $13.75 a share from $13.65. But arch-nemesis Carl Ichan isn’t a fan of the deal:
Icahn argues that the original deal undervalues the company. Icahn, who along with his partners owns a 13 percent stake in Dell, partnered with Southeastern Asset Management to offer shareholders $14 per share in cash, as well as a single warrant for every four shares they sell. That warrant can be redeemed at anytime in the next seven years for one Dell share at $20.
Another data point. The battle lines are being drawn:
A special committee appointed by Dell’s board suggested that Icahn’s deal was not in the best interests of the company and endorsed the founder’s previous offer. However, major brokerage houses, including T. Rowe Price, that own Dell shares, have come out against the Michael Dell deal. And with Icahn continuing in his bid to convince other shareholders that his deal is superior, it wasn’t clear whether Silver Lake and Michael Dell could get enough votes to move forward on their original proposal.
Also worth noting, the special vote that would decide who wins has been pushed to August 2nd. Perhaps in a sign that Dell doesn’t have the numbers to make this happen. So, I would check in later this week to see things go “boom.”
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This entry was posted on July 29, 2013 at 9:10 am and is filed under Commentary with tags Dell. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.