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.

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