Beleaguered Dell’s board rebuffs Michael Dell’s proposed change on buyout vote, jeopardizing privatization deal

“Dell’s board rejected CEO Michael Dell’s attempt to change the voting rules for his bid to buy the slumping personal computer maker, a decision that is likely to doom the deal,” Michael Liedtke reports for The Associated Press. “But the endangered buyout could still get a reprieve if Michael Dell and his allies accept a counterproposal that would extend the voting period for a third time and allow a bigger pool of shareholders to cast ballots.”

“A vote on Michael Dell’s offer is scheduled to be held Friday. He had proposed a change designed to make it easier for that bid to win shareholder approval: In exchange for an extra $150 million, Michael Dell wanted to exclude shareholders who didn’t vote from being counted as in the opposition column,” Liedtke reports. “Dell’s board turned down that demand, but said it’s willing to postpone Friday’s vote and give shareholders several more weeks to consider the buyout proposal if Michael Dell and Silver Lake don’t withdraw the slightly higher offer of $24.6 billion, or $13.75 per share, dangled before the company last week.”

Liedtke reports, “The original bid has faced stiff criticism from a vocal camp of critics led by two of Dell’s largest shareholders, billionaire Carl Icahn and investment firm Southeastern Asset Management, who want to oust Michael Dell as CEO and replace the company’s entire board to pursue different alternatives… Dell Inc.’s stock has fallen by more than 40 percent since Michael Dell returned for a second stint as CEO in early 2007, just as Apple Inc. was getting ready to release the iPhone. That device launched a new era in computing that has seen a growing number of people rely on smartphones and tablets for everyday tasks that used to be done on laptop and desktop machines. Like most other major PC makers, Dell got caught off guard by the shift and has been scrambling to adapt while its revenue and earnings have been drooping.”

Read more in the full article here.

MacDailyNews Take: Hey, we’ve got an idea!

Related articles:
Michael Dell plans to stay at beleaguered Dell even if his buyout attempt fails – July 29, 2013
Michael Dell ups buyout offer for beleaguered Dell; shareholder vote pushed off to August 2 – July 24, 2013
Apple now worth 38 times Dell’s market value – October 3, 2012
Beleaguered Dell: Shut it down and give the money back to the shareholders – March 02, 2007
Biting words on Apple come back to haunt Dell – February 10, 2007
Steve Jobs emails Apple team: Michael Dell not the best prognosticator, Apple worth more than Dell – January 16, 2006
Apple now worth more than Dell – January 13, 2006


  1. Tough times in Texas. I’m always happy to see Apple do well. But I just hate to see hard-working people lose jobs. We don’t need more people losing their jobs ending up flipping burgers for a living. Enough already.

  2. Let’s go back to the theme park analogy. Apple is Cedar Point (and the rest of the Cedar Fair franchise) and MS/Google/Samsung/etc are the Six Flags. Six Flags made so many bad decisions that it would make Monkey Ballmer blush. Their biggest mistake was trying to combine Six Flags Ohio with SeaWorld. Look at the park now. It’s just a minor water park with some abandoned roller coasters and attractions in the back. Cedar Fair got the loot out of this by sending the remaining attracitions to Michigan’s Adventure near Grand Rapids and King’s Island near Cincinatti. Think about that.

  3. That’s exactly what Cedar Fair did to Geauga Lake. The only difference is that the shareholders did not get any money, but some parks in Michigan, southern Ohio, and Virginia got new roller coasters.

    1. You are thinking of Samsung. Actually, check out GooPhone. While Samsung Merley makes phones that are “similar” to iPhone, GooPhone’s phones are EXACT replicas of the iPhone! Now THAT is slavish copying!

  4. Look, Mr. Dell said some pretty silly stuff about Apple, but at least he is sort of following his own advice. At least he part about giving the money back to the shareholders.
    I would like to see him take the company private. Interesting idea. And Dell has had a history of being Linux friendly. I would like to see them continue, prosper even, and dump Windows. Start selling cheap machines (like they have always done) but with a good desktop version of Linux, like Ubuntu. They could provide support their Dell-level of support. Start moving the unwashed masses off Windows.

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