Feeds

'Disturbed' Dell investors could tank private buyout

But Michael and the VCs unlikely to raise offer - report

Bridging the IT gap between rising business demands and ageing tools

According to reports, Dell's largest independent shareholder, Southeastern Asset Management, is not keen on the $24.4bn buyout bid, and it's not the only one.

Sources whispered to Reuters that Southeastern and other investors think the deal undervalues their shares at $13.65 each and were hoping for more like $20 a share.

Southeastern is reported to have said it is "disturbed" by the offer from a consortium of private equity funds and some cash from founder and CEO Michael Dell, but it has declined to comment publicly.

The company, which holds the largest outside slice of Dell at 7.5 per cent, has been known to agitate at tech firms before, having given up on Sun and pushed it into acquisition by Oracle to get some "true economic value" out of its stake. Michael Dell currently owns around 14 per cent of Dell's common shares.

According to the sources, the consortium has no intention of raising its offer, it's hoping that shareholders will cave when they realise there are no other options for Dell. That epiphany should come in a company regulatory filing expected in March detailing the actions Dell took before getting to this bid.

However, Southeastern isn't the only unhappy investor. Alpine Capital Research has said that it will vote its two million shares against the deal and Schneider Capital Management is putting its 350,000 shares on the same side.

The dissenting shareholders will need a majority vote, excluding Michael Dell's stake, to torpedo the deal. ®

Application security programs and practises

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.