Michael Dell to be 'aggressive' if buyout succeeds
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 Securities and Exchange Commission, 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 Michael Dell 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 PC business 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 Dell 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.
(c) 2013 AFP