Michael Dell to be 'aggressive' if buyout succeeds

Apr 02, 2013
Personal computer industry pioneer Michael Dell, speaking October 4, 2011, would "invest for growth" and compete aggressively in new markets if his plan to take the company he founded private succeeds, according to a new memo.

Personal computer industry pioneer Michael Dell would "invest for growth" and compete aggressively in new markets if his plan to take the company he founded private succeeds, according to a new memo.

The company founder, in a message to Dell employees available Tuesday in a document filed with the , said he has plans that "will position Dell for long-term success."

The document was released as a special committee set up by Texas-based Dell evaluates two competing proposals to the one led by to take the firm private in a $24.4 billion deal.

Under his plan, Dell would hire more sales personnel and "invest for growth in the PC and tablet business... to enhance our ability to compete," the memo said.

"While Dell's strategy in the has been to maximize gross margins, following the transaction, we expect to focus instead on maximizing revenue and cash flow growth with the goal of improving long-term sales and competitive positioning."

Additionally, a new Dell would "compete aggressively in emerging countries," according to the memo, with investments planned in the BRIC countries—Brazil, Russia, India and China.

"In addition, we expect to expand aggressively in other parts of Asia, Latin and South America, Central and Eastern Europe, the Middle East and Africa," he said in the document.

Dell also said he plans more efforts in "end-to-end information technology solutions" including software, cloud computing, consulting and managed security services.

"We see a lot of new work that needs to be done, but also an extraordinary long-term opportunity if we get it right," he said.

"I am more energized for the future of than ever. Together, we have built an amazing company and our best days are still ahead."

Last week, the special committee renewed its backing for the buyout but said it would continue talks on alternate bids.

The panel, which now faces an apparent bidding war, said the offers from billionaire corporate raider Carl Icahn and investment fund Blackstone Group had not yet been finalized, so it was not clear if they were better for shareholders.

Explore further: Apple Pay fails to unify fragmented market

add to favorites email to friend print save as pdf

Related Stories

Icahn signs confidentiality agreement with Dell (Update)

Mar 11, 2013

Billionaire investor Carl Icahn, who is fighting Dell Inc. founder Michael Dell's plan to take the struggling company private, has entered a confidentiality agreement that would give him access to the computer maker's financial ...

Dell looks to calm shareholder concern over buyout

Feb 11, 2013

Dell is trying to reassure shareholders about its proposed $24.4 billion acquisition by a group led by its founder, saying it considered a number of strategic options before agreeing to the deal.

Rebel Dell shareholder demands more information

Mar 06, 2013

Dell's largest independent shareholder is turning up the pressure against the proposed $24.4 billion sale of the struggling personal computer maker to a group of investors that includes its CEO.

Recommended for you

Apple Pay fails to unify fragmented market

32 minutes ago

Apple Pay, meant to inject momentum into a fragmented market for the emerging mobile payments sector, has instead highlighted the squabbles between retailers and the banking and payments industry.

Sony's quarterly loss balloons on mobile woes

Oct 31, 2014

Sony's losses ballooned to 136 billion yen ($1.2 billion) last quarter as the Japanese electronics and entertainment company's troubled mobile phone division reported huge red ink.

Will Apple Pay be mobile pay's kick-start?

Oct 30, 2014

If anyone can get us to use our smartphones as wallets, it's Apple. That's what experts think about the recent launch of Apple Pay, the first mobile wallet to work on an iPhone.

Google execs discuss regulation, innovation and bobble-heads

Oct 30, 2014

Eric Schmidt and Jonathan Rosenberg help run Google, one of the world's best-known, most successful - and most controversial - companies. They've just published a new book, "How Google Works," a guide to managing what they ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.