Dell’s $24.4 billion buyout plan faces strong opposition

Zeebiz Bureau

New Delhi: Computer maker Dell which was set to take itself private in a USD 24.4 billion deal, considered one of the most significant buyouts since the financial crisis, is facing stiff opposition from investors, a news wire has reported.

Three of Dell Inc's largest investors— Harris Associates LP, Yacktman Asset Management and Pzena Investment Management LLC are objecting to the buyout. These companies reportedly hold together 3.3 percent of Dell's outstanding stock.

Dell had signed a definitive merger agreement under which the company’s Founder, Chairman and Chief Executive Officer Michael Dell would acquire Dell.

Company stockholders would receive USD 13.65 in cash for each share of Dell common stock they hold, in a transaction valued at approximately USD 24.4 billion. The buyers would acquire for cash all of the outstanding shares of Dell not held by Dell and other members of management.

The Dell Board of Directors unanimously approved a merger agreement under which Dell and global technology investment firm Silver Lake Partners would acquire the company and take it private subject to a number of conditions, including a vote of the unaffiliated stockholders.

With Agency Inputs