Michael Dell hikes offer to shareholders to protect deal
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Michael Dell hikes offer to shareholders to protect deal

Last Updated: Wednesday, July 24, 2013, 22:39
 
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Michael Dell hikes offer to shareholders to protect deal
New York: Dell Inc founder Michael Dell and private equity major Silver Lake Partners Wednesday raised their share buyback offer by 10 cents to USD 13.75 apiece to take the company private.

Michael Dell and Silver Lake are facing opposition for the buyout proposal from hedge fund investor Carl Icahn and Southeastern Asset Management.

The Special Committee of the Board of Dell also announced that the special meeting of shareholders, which was previously scheduled to meet today, will be held on August 2.

In a filing to the US Securities and Exchange Commission (SEC), The Special Committee said: "It has received a revised proposal from Michael Dell and global technology investment firm Silver Lake under which they would increase the price and acquire the company at USD 13.75 per share in cash, subject to certain conditions."

"In light of the revised proposal, which the Special Committee is evaluating with the assistance of its financial and legal advisors, the Special Meeting of Stockholders previously scheduled to be reconvened today ... Will be adjourned to August 2, 2013," it further said.

In the letter written to the Special Committee, Dell and Silver Lake said they increase the merger consideration to USD 13.75 in cash per share of company common stock, representing an increase in the consideration to be paid to unaffiliated stockholders of about USD 150 million.

"This is our best and final proposal. We are not willing to discuss any further increase in the merger consideration nor are we willing to increase the merger consideration to USD 13.75 per share without the change to the Unaffiliated Stockholder Approval requirement described above," they added in the letter.

Meanwhile, in a release yesterday, Icahn and Southeastern said: "Why is the Special Committee so committed to forcing loyal Dell stockholders out of Dell so that our company can be sold to Michael Dell/Silver Lake at what we believe is a bargain price?"

PTI


First Published: Wednesday, July 24, 2013, 22:39


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