Dell postpones vote on go-private plan to July 24

Jul 18, 2013
Dell CEO Michael Dell delivers a keynote address on September 22, 2010 in San Francisco, California. Dell postponed a shareholder vote Thursday on its $24.4 billion go-private plan led by Dell, amid reports that several major investors opposed the deal.

Dell postponed a shareholder vote Thursday on its $24.4 billion go-private plan led by founder Michael Dell, amid reports that several major investors opposed the deal.

A Dell statement said the shareholder meeting on the plan, which opened briefly in Texas, was delayed until July 24.

"Today's special meeting of stockholders was convened and adjourned to provide additional time to solicit proxies from Dell stockholders," the statement said. "No vote was taken on the proposed transaction prior to the adjournment."

The plan announced in February aimed to give Michael Dell a chance to revive the fortunes of the former number one computer maker without the pressures of a publicly traded firm.

But opponents, galvanized by corporate raider Carl Icahn, have claimed the buyout at $13.65 dollars a share undervalues the company.

The Wall Street Journal reported Wednesday that holders of at least 30 percent of Dell were set to vote against the buyout. The plan required a majority of the shares excluding an estimated 16 percent held by Michael Dell and his affiliates.

Icahn proposed an alternate plan that would pay $14 per share for up to 71 percent of Dell stock, and recently sweetened the deal by adding one warrant for every four Dell shares, entitling the holder to one share of Dell at $20.

But Dell's board and others contend Icahn lacks financing for such a plan and that it would do little to help foster a turnaround.

Icahn is backed by the investment firm Southeastern Asset Management. And another financial firm, T. Rowe Price, has also indicated it would oppose the buyout.

Dell's board contends the company needs to make radical changes to keep up with a shift to mobile computing.

Explore further: Viacom CEO's 2014 pay rises 19 percent to $44.3 million

add to favorites email to friend print save as pdf

Related Stories

Icahn boosts offer for Dell

Jul 12, 2013

Corporate raider Carl Icahn and his allies boosted their offer for troubled US computer giant Dell, and repeated their call for shareholders to reject a $24.4 billion private equity buyout.

Icahn and Southeastern push against Dell buyout

Jun 06, 2013

Activist investor Carl Icahn and Southeastern Asset Management Inc. are formally urging Dell shareholders to reject a buyout offer from the struggling PC maker's founder and investment firm Silver Lake Partners.

Dell board committee seeks info on investor plan

May 13, 2013

Dell board members say they need more details from investor Carl Icahn if he wants them to seriously consider his latest challenge to Michael Dell's $24.4 billion plan to take the computer maker private.

Advisory firm backs Dell buyout

Jul 08, 2013

A key shareholder advisory firm on Monday backed a $24.4 billion private equity buyout of Dell, giving a major boost to the plan led by founder Michael Dell to reorganize the struggling computer giant.

Recommended for you

NHL sends GoPro cameras onto the ice

Jan 23, 2015

Ice hockey fans will get a new perspective on the fast-moving game when National Hockey League players don GoPro cameras, starting with this weekend's all-star fixture.

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.