Welcome to the MacNN Forums.

If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below.

You are here: MacNN Forums > News > Tech News > Dell receives two alternate offers just before deal deadline

Dell receives two alternate offers just before deal deadline
Thread Tools
MacNN Staff
Join Date: Jul 2012
Status: Offline
Reply With Quote
Mar 24, 2013, 11:37 AM
According to reports, Dell has received two or more offers opposing the $24.4 billion deal on the table to take the company private. As expected, the Blackstone Group submitted a preliminary offer prior to Saturday's expiration, under the terms of the "go shop" clause in the agreement, which allowed Dell to seek other suitors. A second offer was received by investor Carl Icahn who purchased a large block of shares a few weeks ago.

Firm details of the Blackstone deal isn't known, but Blackstone is offering between $13.65 and $15 per share in a deal that will invite shareholder participation, according to the Wall Street Journal. Blackstone has invited GE Capital, amongst others, to assist in financing the deal.

Icahn has previously demanded Dell pay $15.7 billion in special dividends above the buyout price, or risk a proxy fight. Icahn's proposed dividend of $9 per share represents a 67 percent premium to existing shareholders above the current $13.65 offer on the table for the leveraged buyout proposed by Michael Dell, Microsoft, and investment company Silver Lake.

The existing privatization deal requires the majority of the shareholders (not including Michael Dell's shares) to vote in favor of the payout. Southeastern Asset Management, another vocal opponent of the buyout, would lose at least $825 million if the deal completes.

According to a report at Reuters, Dell has dramatically cut its forecasts for 2013 operating profit by $700 million to $3 billion. More details of the cut are expected in a proxy filing this week.
Thread Tools
Forum Links
Forum Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On
Privacy Policy
All times are GMT -4. The time now is 04:35 AM.
All contents of these forums © 1995-2015 MacNN. All rights reserved.
Branding + Design: www.gesamtbild.com
vBulletin v.3.8.8 © 2000-2015, Jelsoft Enterprises Ltd., Content Relevant URLs by vBSEO 3.3.2