Dell CEO Reduces Value of Shares in Hopes of Company Going Private
February 14, 2013 5:08 PM
Dell CEO Michael Dell
(Source: Boston Herald)
The value of his 16 percent stake in the company from $13.65 a share to $13.36 a share
Dell's CEO OK'd a lower valuation of his stake in the company in an effort to push a $24.4 billion deal along, which would allow
Dell to go private
Dell CEO Michael Dell agreed to drop the value of his 16 percent stake in the company from $13.65 a share to $13.36 a share. This will help increase the chances of the $24.4 billion deal going through.
Dell told the board he wanted the company to go private back in August 2012, and negotiations with Silver Lake Management LLC started in October. Dell said Silver Lake had raised its proposed offer price "at least once" before.
"To facilitate a price increase by Lake, Mr. Dell and related persons agreed that their shares to be rolled over in the proposed transaction would be valued only at $13.36 per share as opposed to the $13.65 price offered to the company's unaffiliated stockholders," said Dell's Thursday filings.
A shareholder vote for the $24.4 billion deal to go private will be held in June or July of this year, and it will need a majority vote to be approved. For now, Dell's board is conducting a 45-day "go-shop" term where it will look for higher bids. The board created a review committee of independent directors.
Dell has been in a tight spot for a while, as the PC business took a dive and consumers moved toward mobile devices like smartphones. Between a lack of PC upgrades and the fact that
Windows 8 hasn't made much of an impact
on hardware sales yet (Dell's CFO Brian Gladden said Windows 8 wouldn't affect Dell's financial results for the next two quarters), Dell has seen better days.
, Dell reported a profit drop of 47 percent to 39 cents per share while revenue dropped 11 percent to $13.7 billion from a year previous. Its net income fell from $893 million (49 cents per share) in Q3 2011 to $475 million (27 cents per share) in Q3 2012.
Dell is expected to report its next quarterly earnings on Tuesday.
This article is over a month old, voting and posting comments is disabled
"If you look at the last five years, if you look at what major innovations have occurred in computing technology, every single one of them came from AMD. Not a single innovation came from Intel." -- AMD CEO Hector Ruiz in 2007
Dell Earnings Disappoint as PC Sales, Windows 8 Fail to Save It
November 16, 2012, 7:19 PM
Dell's Last Hope? Company Turns to Windows 8 Amid Plunging Sales
August 22, 2012, 3:00 PM
Smart Security Cameras: 5 Good Choices For Any Budget
July 25, 2016, 7:13 PM
Top 5 Smart Watches
July 21, 2016, 11:48 PM
Retiree Sues Apple For $7,500 for Wiping Honeymoon Photos From His iPhone
November 30, 2015, 10:23 AM
iPhone 7 May Pack 3-4 GB Memory, More Storage; 4-Inch Comeback is Rumored
November 20, 2015, 10:12 PM
OnePlus One, OnePlus 2 Will Receive Android Marshmallow in Q1 2016
November 16, 2015, 9:58 AM
Lenovo Whoa: Motorola Droid MAXX 2 and Turbo 2 Break Cover in Leaks
October 26, 2015, 3:12 PM
Most Popular Articles
Say Goodbye to Data Plans - Sprint and T-Mobile offer Unlimited Data
August 22, 2016, 6:12 AM
Uber - Everyone's Autonomous Car Driver?
August 20, 2016, 6:01 AM
Lenovo vs. Asus vs. HP - Best Laptop Under $500.00
August 19, 2016, 4:00 AM
2 NEW PlayStation 4 Models - Unveiling September 7th
August 23, 2016, 6:23 AM
Get Ready to wait in line – iPhone 7 due September.
August 18, 2016, 7:15 AM
Latest Blog Posts
Coming Soon - Drones and Airports
Aug 24, 2016, 12:40 PM
SolarCity’s Gigafactory: A Milesone in Emerging Technology by Lily Emamian - 15 August 2016
Aug 15, 2016, 6:30 AM
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information