Some Dell Shareholders Unhappy with "Lowball" Buyout Attempt
February 11, 2013 8:06 AM
comment(s) - last by
Dell CEO Michael Dell
Some shareholders want more $$$
Dell Inc. founder Michael Dell along with a consortium of partners has been working hard to
buy all outstanding shares
of Dell stock and take the company private. The current offer on the table from Dell and his partners is $13.65 per share according to sources. However, some shareholders believe that stock in the company is worth more than $20 per share.
reports that Harris Associates LP, Yacktman Asset Management, and Pzena Investment Management LLC have all banded together with Southeastern to object to the $24.4 billion buyout offer.
Harris Associates LP, Yacktman Asset Management, and Pzena Investment Management LLC together own a combined 3.3% of outstanding Dell stock. Southeastern owns 8.5% of Dell and believes that it shares are worth $24 each with the financial services division in recent acquisitions figured in.
"We are writing to express our extreme disappointment regarding the proposed go-private transaction, which we believe grossly undervalues the Company," Southeastern CEO Mason Hawkins and Chief Investment Officer Staley Cates wrote in a letter.
"We retain and intend to avail ourselves of all options at our disposal to oppose the proposed transaction, including but not limited to a proxy fight, litigation claims and any available Delaware statutory appraisal rights."
Southwestern believes that breaking up the company and selling units separately would be more beneficial to shareholders.
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RE: Currently trading at $13.63...
2/11/2013 10:26:43 AM
What you don't know and is why you think the deal is raw because Michael Dell had made it known that he wanted to go private many months back when the stock price was below $9, near 30%+ jump since. This is just writing it on the stone.
The same story is out for Best Buy in case you didn't know. The founder has offered to go private and is probably pursuing some way to do it just like how Michael Dell did.
The only reason that it hasn't hit the selling price and people are trading the stock is because this offer has not been accepted and may require SEC approvals too. Regardless Michael may come out happy as the terms of the deal back-out gets the group 8+ digits figure, even more (~$1B) if Dell takes another party's offer.
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