Dell (DELL) May Delay Vote to Garner More Takeover Support; Bid Won't be Raised
Dell, Inc. (Nasdaq: DELL) is lower in early trading amid chatter than a $13.65 per share bid to take the company private by Michael Dell and private equity firm Silver Lake might not be raised.
News comes as Dell mulls delaying a shareholder vote slated for Thursday as he works toward getting more support for his proposal. Dell holds a 16 percent stake in the company he founded over three decades ago.
The Dell bid is unlikely to be raised, sources said late Tuesday.
Activist investor Carl Icahn, along with Southeastern Asset Management, has proposed a counterbid to Dell's offer, though this bid wouldn't go up for vote on Thursday.
On Tuesday night, a Special Committee for Dell said it didn't view Icahn's offer as superior to that of Dell/Silver Lake. Icahn recently added a clause to his bid which would issue a warrant for every four Dell shares held to purchase an additional share at $20. The Special Committee noted,
Into the open, Dell is down 1.6 percent.
News comes as Dell mulls delaying a shareholder vote slated for Thursday as he works toward getting more support for his proposal. Dell holds a 16 percent stake in the company he founded over three decades ago.
The Dell bid is unlikely to be raised, sources said late Tuesday.
Activist investor Carl Icahn, along with Southeastern Asset Management, has proposed a counterbid to Dell's offer, though this bid wouldn't go up for vote on Thursday.
On Tuesday night, a Special Committee for Dell said it didn't view Icahn's offer as superior to that of Dell/Silver Lake. Icahn recently added a clause to his bid which would issue a warrant for every four Dell shares held to purchase an additional share at $20. The Special Committee noted,
If these transactions were consummated and all stockholders other than Mr. Icahn and Southeastern tendered, each stockholder would be required to retain approximately 29% of his or her shares in the highly leveraged public company that would result, and would receive for each share held approximately $9.99 in cash and 0.18 warrants.
Into the open, Dell is down 1.6 percent.