Home / Michael Dell, Silver Lake to stand firm on bid: report

Michael Dell, Silver Lake to stand firm on bid: report

Delayed Dell Inc shareholder vote would not yield increased offer, say sources

Michael Dell, Silver Lake to stand firm on bid: report
Dell Inc’s 18 July shareholder vote may be postponed.

Michael Dell and his bidding partner Silver Lake would not increase their standing offer to Dell Inc shareholders for the ailing company if the vote on their proposal was delayed, two insiders told Reuters.

The shareholder vote on the Dell-Silver Lake bid is due to take place tomorrow, but Dell Inc's board is said to favour a postponement as it believes the result is uncertain.

Dell and Silver Lake have tabled an offer of $13.65 a share for the world's number-three computer maker, which is labouring under a slump in global PC sales caused by increasing demand for tablets. Michael Dell intends to take private the company he founded in his college dorm room and is thought to favour an IBM-style, enterprise-focused business model as the means to resurrect a flagging balance sheet.

Some of Dell Inc's largest shareholders, including Southeastern Asset Management Inc and maverick billionaire investor Carl Icahn, believe the $13.65-per-share offer undervalues the company. Icahn and Southeastern have prepared a counter offer, but shareholders must formally reject the Dell-Silver Lake proposal before it can be considered.

The two unnamed sources interviewed by Reuters said Michael Dell and Silver Lake had committed to taking joint decisions on any possible increase in their proposal and currently stood firm on their bid, which would amount to a $24.4bn payout.

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