“Dell founder Michael Dell, along with his partner, investment firm Silver Lake, has decided to pay more to bring his company private,” Don Reisinger reports for CNET. “In a letter submitted to Dell’s board of directors, Michael Dell said that he and Silver Lake will now pay $13.75 per share in cash to bring the PC maker private. Dell and Silver Lake previously offered to pay $13.65 per share, meaning the new investment will net shareholders $150 million more than the $24.4 billion they would have received in the initial deal.”
Reisinger reports, “In order to get the higher price, however, Michael Dell has a requirement: a simple majority of shareholders will be all it takes to approve the deal. In the letter presented to the board of directors on Tuesday, Dell and his partners argued that the board’s allowance of a provision that shares that are not voted count as votes against the merger is ‘unfair,’ and Dell wants that changed.”
“The thorn in Dell’s side is activist investor Carl Icahn, who has been consistently critical of the founder’s offer. 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,” Reisinger reports. “The tenor of the letter Dell and his partners sent to the board indicates they’re becoming frustrated with the process. In the letter, the partners wrote that ‘this is our best and final proposal,’ adding that the company has until 6 p.m. ET tonight to make a decision or it will be withdrawn and terminated.”
Read more in the full article here.
MacDailyNews Take: On October 6, 1997, in response to the question of what he’d do if he was in charge of Apple, Dell founder and CEO Michael Dell stood before a crowd of several thousand IT executives and answered flippantly, “What would I do? I’d shut it down and give the money back to the shareholders.”
One November 10, 1997, Apple’s new Interim CEO (iCEO) Steve Jobs responded speaking in front of an image of Michael Dell’s bulls-eye covered face:
We’re coming after you. You’re in our sights.
Apple currently has over 6.5 times Dell Inc.’s total worth in cash.
Havin’ fun, Mikey?
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I hope he dumps his entire fortune in to this buyout.
Poor, poor Mikey.
I guess he should not have dropped out of school. How is he ever going to get a job in this tough economy?
Detroit is the prime example of unrestrained Democrat/Progressive/Liberalism.
Union cronyism taken to its ultimate end.
Texas is the polar opposite. Republican. That’s why they have jobs.
Exactly where in my post above am I being “racist?”
How do you know what I was assuming?
Being a Republican state is no guarantee that there will be jobs. Minnesota, one of the most liberal states, has had one of the lowest unemployment rates in the nation for decades. Look at a map of employment by state. Here’s a current one: http://money.cnn.com/interactive/economy/state-unemployment-rates/ Notice that both blue and red states rank near the top and bottom.
Here’s what I posted yesterday about the economic impact of businesses (and to address Contrarian’s rebuttal, no, I’m not a liberal cheerleader. I’m an independent.)
“If Microsoft’s fortunes decline and the economy of Redmond takes a dive, will it be the fault of the local politicians, or of Steve Ballmer?
“It’s not the fault of politicians that the Motor City has fallen. It’s the fault of the auto industry. Who has had more influence on the lives of citizens there in the past four decades, the business leaders or the political leaders? Who made crappy cars like the Hornet or the Pinto or the Chevette in the 70′s which gave American cars a bad name for years to come? I still won’t own an American-made car to this day. Look at the history of the big three and you’ll see incompetence and lack of foresight on a Microsoftian-scale. They are largely responsible for the current healthcare debacle the nation is in because back in the ’50s when Michigan politicians wanted to create government health insurance plans for workers, the automakers decided instead that they would offer insurance as a means of attracting better employees. That became the norm across the nation. Well, now they can’t afford to pay for the health care they’ve promised (the ballooning cost of which, by the way, can be traced back to Nixon’s decision to allow health care companies to be private, for-profit entities). I agree wholeheartedly that the unions’ inflexibility often hurt the industry. But I’m not convinced that Detroit would be a business mecca right now if Michigan, and specifically Detroit, had been Republican-lead all these years.”
LOL, there it is, when the TRUTH hurts a liberal pulls out the “R” card.
Racism, on some level, exists, and will always exist, in every society. That said the most damaging racism comes from misuse of the word. In that liberals reign supreme.
“most damaging comes from misuse of the word”
Really? I’m sure there are people who would disagree with you, but can’t say that because they are dead.
Talk about hyperbole and “misuse” of words. Maybe you should look up the meaning of the words “most” and “damaging.”
Texas isn’t just Dell.
Texas has huge industries in crude oil, natural gas, aerospace, defense and high technology companies, as well as healthy manufacturing. As well as a Huge player in farming and live stock.
Texas will never turn into a cess pool like Michigan
Even apple is putting offices in Texas
You’ve clearly never been to Texas, is there racism ? Yes. Are there physco Christians ? Yes.
But not in most areas.
Go to Austin Texas, easily one of the best and most cultured cities in America, it’s also the live music capital of the world.
The food is also super good.
What’s good in Michigan? Shitty weather and burned out cities?
Texas has some very good university’s, Dallas, Ft Worth, Houston, Austin, awesome coastal towns, very cool culture, awesome history.
And it’s not as right wing as you think. It’s projected to turn to a blue state in about 10 years as the younger generations come into play.
Many many texans I have net are very nice people.
And it almost never snows.
Yep, all those businesses and people flocking to Michigan 😉
When you don’t know what else to do, you go back to what you have trashed and do it over again.