Dell Seeks Shareholder Approval on Buyout Offer

logo80Dell filed papers with regulators Friday to take the company private in a buyout deal valued at $24 billion led by founder Michael Dell and investment firm Silver Lake partners.
A special shareholder meeting will be held on July 18th to vote on the deal.
Michael Dell and Silver Lake are offering $13.65 per share in cash, which is a 37 percent premium over the average closing share price during the 90 calendar days ending Jan. 11, the day rumors of the buyout began to circulate, according to a news statement.
In a letter to shareholders, a special committee of Dell’s board recommended shareholders approve the deal.
“Our analysis led us to conclude unanimously that a sale to the Michael Dell/Silver Lake group for $13.65 per share is the best alternative available – in a challenging business environment it offers certainty and a very material premium over pre-announcement trading prices. It also shifts very substantial risks to the buying group – risks that in any leveraged recapitalization would be retained by the stockholders and considerably magnified by leverage and the public nature of the resulting stub,” according to the letter.

Speak Your Mind

*