Sunday, 24 July 2016
Last updated 1 day ago
Sep 12 2013 | 1:02pm ET
Capping a contentious seven-month effort, Dell Inc. shareholders approved a $24.8 billion offer for the company from founder Michael Dell and private-equity firm Silver Lake Partners.
Some 65% of shareholders voted in favor of the deal, Alex Mandl, who headed the special committee of Dell's board handling the sale, said.
"I am pleased with this outcome and am energized to continue building Dell into the industry's leading provider of scalable, end-to-end technology solutions," Michael Dell said. "As a private enterprise, with a strong private-equity partner, we'll serve our customers with a single-minded purpose and drive the innovations that will help them achieve their goals."
The vote today at a special shareholders meeting in Austin, Texas, will end Dell's 25 years as a public company. The outcome of the poll has not been in much doubt since early last month, when Dell's board accepted a new offer from Michael Dell and Silver Lake, boosting the purchase price by $400 million in exchange for a change in voting rules that would ease the deal's path.
At the time of the new agreement, a majority of voting shareholders were approving the earlier, $24.4 billion deal, but the large number of abstentions were to be counted as "no" votes.
The buyout is expected to close before the end of Dell's fiscal third quarter.
Prior to the new August agreement, the buyout appeared headed for defeat in the face of stiff opposition led by Carl Icahn and Southeastern Asset Management, who proposed their own plan for a leveraged recapitalization that would have paid a special dividend and kept Dell a public company. But their efforts to block the new deal failed last month, and Icahn admitted defeat this week.