Deals

Michael Dell refuses to raise his buyout bid as shareholder vote approaches

Michael Dell and private equity firm Silver Lake Partners have made a final offer of $24.4 billion to buy back Dell and take the company private once again.

That figure has remained unchanged since the buyout was first announced back in February 2013. Despite various external pressures, Dell and Silver Lake will not be increasing that amount.

As of this writing, Dell stock is trading at $13.03. With the standing buyout offer, Dell stockholders will get $13.65 for each share of Dell stock.

Shareholders, including activist investor and second-largest holder of Dell stock Carl Icahn, will vote on the buyout in just 12 more days.

Icahn bought up around 6 percent of Dell stock earlier this year and wants to keep the company trading on public markets.

Icahn himself thinks the $24 billion bid undervalues the company. Instead, he has proposed buying 58 percent of the company at $15 per share, a total $16 billion value.

Other major shareholders, including Southeastern Asset Management and T Rowe Price, are also expected to vote against the buyout bid.

Another potential buyer, Blackstone Group, had said it would be willing to pay around $14.25 per share for 100 percent of Dell’s stock, but the firm later backed out of the deal.

blog comments powered by Disqus