SHARING AMERICA'S TECH NEWS FROM THE VALLEY TO THE ALLEY
by Brett Molina, courtesy USA TODAY
Dell has reached a tentative deal with founder Michael Dell and Silver Lake Partners on a buyout, ending a months-long battle over the fate of the struggling PC maker.
In a statement released today, Dell says the new deal boosts the purchase price to $13.75 a share, and a special dividend of 13 cents per share when the deal is closed.
A scheduled shareholder meeting to vote on the deal has been moved to September 12. Dell shares are up 5% in early trading.
The deal is the latest in the ongoing battle over the future of the world’s third-largest PC maker. Last week, Michael Dell and Silver Lake offered a “final” proposal at $13.75 a share, so long as Dell excluded abstentions — which count as “no” votes — from the shareholder voting tally. In a letter issued Wednesday, Dell’s special committee rejected the amendment, but offered to consider the higher bid.
Meanwhile, billionaire investor Carl Icahn and investment management firm Southeastern Asset Management continue their efforts to thwart a buyout plan they see as “undervalued.” In a letter on Monday, Icahn and Southeastern urged shareholders to “let the desperate Dell debacle die.”
Icahn also filed a lawsuit in a Delaware court attempting to block Dell from setting a new record date for the shareholders’ vote, which takes place today.The longer the buyout saga plays out, the longer it takes Dell to begin its plan for a turnaround, as it and other personal computer makers continue to struggle while more consumers ditch home computers in favor of smartphones and tablets.
Thank you, TiA