Feeds

Compellent straps on chastity belt for Dell

Other bidders to stub appendages on iron knickers

Beginner's guide to SSL certificates

Compellent and Dell have cooked up a poison pill shareholder rights deal to discourage any other bidders from coming forward and paying more than Dell.

Dell really does not want to get burned again after the 3PAR bid battle it lost to HP.

This is how the poison will take effect: All Compellent stockholders of record as of 27 December, 2010, will receive rights to purchase shares of a new series of preferred stock. If any person or identifiable group of people other than Dell buy 15 per cent or more of Compellent stock, or announce a tender offer for that amount of stock, then "each Right will entitle the holder to purchase from Compellent one one-hundredth of a share of preferred stock."

In more detail, each stockholder, but not the acquiring entity, "would be entitled to purchase, at the exercise price of the Right, such number of shares of Compellent common stock having a current value of twice the exercise price of the Right." Until the new acquirer has 50 per cent or more of Compellent's common stock, Compellent's board can "exchange the Rights, in part or in whole, for Compellent common stock. "

Here's the kicker:

"If Compellent is acquired in a merger or other business combination transaction, other than by Dell Inc or one of its affiliates, each holder of a Right (other than the Acquiring Person) would then be entitled to purchase, at the exercise price of the Right, such number of shares of the acquiring company's common stock having a current value of twice the exercise price of the Right."

This would make any bid by an alternative bidder to Dell much, much more expensive.

This poison pill has a one-year life span, as: "The Rights will expire on 27 December, 2011."

The mere setting up of this complicated scheme implies that there could be other potential bidders circling around Compellent.

Law firms are already on the case, with a few trying to set up class action suits asserting that Compellent's directors are under-selling the company. ®

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.