Dell completes deal to go private

Oct 29, 2013
The Dell logo is displayed on the exterior of the new Dell research and development facility on October 19, 2011 in Santa Clara, California

US computer giant Dell announced Tuesday it had completed the deal to go private in a $24.9 billion buyout led by company founder Michael Dell.

"Today, Dell enters an exciting new chapter as a private enterprise," Michael Dell said in a statement.

"Our 110,000 team members worldwide are 100 percent focused on our customers and aggressively executing our long-term strategy for their benefit."

Dell stockholders will receive $13.75 in cash for each share plus a special dividend of 13 cents per share.

The transaction, approved September 12 after a bitter fight with dissident shareholders, takes Dell stock off the market.

Opposition was led by billionaire investor Carl Icahn, who claimed the plan undervalued the former number one computer maker.

Dell is looking to transform itself after having missed the shift to mobile computing. Analysts say this will be easier without the pressure of shareholders looking for profits each quarter.

Michael Dell created the company from his dorm room at the University of Texas and grew it into a global heavyweight known for direct service to customers and cutting out the retail middle man.

But diminishing PC sales led to seven straight quarters of declining profits and a committee established to consider Dell's strategic options gave a bleak outlook for the future of the PC market.

The buyout is led by Michael Dell with financing headed by the private equity firm Silver Lake Partners.

Explore further: Dell says it has regulatory clearance for buyout

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.

Dell: Investors offer short by $3.9B

Jun 05, 2013

Dell says a buyout offer from shareholder Southeastern and billionaire investor Carl Icahn is about $3.9 billion short of the amount needed to pay shareholders as promised and operate the business.

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.

Recommended for you

Alibaba makes Wall Street debut

Sep 19, 2014

Alibaba made its long-awaited Wall Street debut Friday on the heels of a record stock offering that opens the door to global expansion for the Chinese online retail giant.

Alibaba IPO to boost employee fortunes to $8 bn

Sep 19, 2014

Employees of Chinese e-commerce giant Alibaba will see their fortunes swell to nearly $8 billion as the company prepares a massive US stock offering that could be valued at $25 billion.

Alibaba mega IPO caps founder Jack Ma success tale

Sep 19, 2014

When Jack Ma founded Alibaba 15 years ago he insisted the e-commerce venture should see itself as competing against Silicon Valley, not other Chinese companies. That bold ambition from a time when China was ...

User comments : 0