Wednesday, 27 May 2015
Last updated 4 hours ago
Jul 5 2013 | 9:41am ET
Concern is building that Dell Inc. shareholders will vote against the $24.4 billion buyout of the company proposed by its founder and a private-equity firm.
Last weekend, the special committee of Dell's board overseeing the sale urged Michael Dell to increase his offer for the company. The committee is reportedly worried that investors, egged on by Carl Icahn and Southeastern Asset Management, are turning against the deal, following meetings between the committee and major investors. The committee is also concerned that proxy advisory Institutional Shareholder Services will urge investors to vote "no" next week.
The committee is said to believe that ISS's recommendation will be decisive.
Dell shareholders have until July 18 to vote. In the run-up to that deadline, Icahn and Southeastern, who oppose the plan and have offered their own proposal for a $16 billion share buyback, have ratcheted up their criticisms.
Dell cannot vote his 16% of the company's shares as part of the agreement, meaning that about 43% of all Dell shareholders must vote "yes" for the deal to be approved.
Dell's partner, Silver Lake Partners, has been reticent about raising their bid, and is unlikely to do so now given the continued deterioration in the company's business. That leaves Dell himself; the founder is already contributing his stake to the deal at $13.36 per share, 29 cents less that the $13.65 offer price.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…