Dell Board Backs Michel Dell Buyout Offer
June 1 , 2013
The Dell board is backing a buyout offer made by the company's founder and current CEO, Michael Dell. The board has urged shareholders to express their assent of the in a vote scheduled for July 18. The share value of PC maker has been showing a steady decline for some time now.
The directors of the Dell board unanimously backed the offer from Michael Dell and Silver Lake Partners, an investment firm, to offer shareholders $13.65 for each share – a total of $24.4 billion – and to turn the company private. Southeastern Asset Management Inc. and investor Carl Icahn offered stakeholders an alternative plan letting them keep their stake and offering an additional $12 per share. Southeastern is Dell’s largest outside investor.
Dell's special board committee sent out a letter backing Michael Dell's offer to over 70 key shareholders of the organization. The letter says that the offer is "a very material premium" and offers certainty.