Feeds

Dell shareholder: 'Rush' is because Michael D wants to buy

Pell-mell Dell sell = 'Like hell' yell from SAM

The essential guide to IT transformation

Dell shareholder Southeastern Asset Management has said that the board's assessment of the buyout deal offered by Michael Dell and Silver Lake is flawed and it's only rushing to sell because Michael Dell wants to buy.

The shareholder published an open letter accusing the board of focusing disproportionately on the computing aspect of Dell's business and "giving little attention" to the Enterprise Storage and Services unit in its analysis of the offer.

"Over the last two years, under a Board authorised program, the Company has repurchased 224,000,000 shares for $3.4 billion at an average price of over $15.25 per share," Southeastern said in the letter.

"The same Board that was confident with Dell buying its shares for $15.25 is now attempting to convince all shareholders that Dell's business is in such dire straits that they should take $13.65 and exit their investments.

"We believe the Board's sudden rush to sell is triggered by one thing: Mr. Dell's desire to buy."

A number of shareholders have argued that the Dell/Silver Lake $24.4bn offer to take the computer firm private undervalues it and have urged other shareholders to turn the deal down. As well as opposition from Southeastern, the PC-maker is facing groups headed up by Icahn Enterprises and Blackstone Group that have thrown counter-bids of $15.65 a share and $14.25 a share respectively into the bidding.

According to sources who whispered to the Wall Street Journal, Blackstone is in talks with several tech companies to join its bid to take over Dell and told them that they would have a role in the company's strategic direction as well as financially if they signed up.

The private equity firm allegedly has the backing of Southeastern Asset Management, which will roll its 8.4 per cent stake into an offer. As well as the $14.25, Blackstone has also said it will allow shareholders to hang on to some of their stock in a piece of Dell that will stay public.

Meanwhile, both Michael Dell and activist investor Carl Icahn, of Icahn Enterprises, may end up hitching their wagons to Blackstone if it comes up with a convincing enough deal to keep them happy. ®

5 things you didn’t know about cloud backup

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Judge nixes HP deal for director amnesty after $8.8bn Autonomy snafu
Lawyers will have to earn their keep the hard way, says court
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
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.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.