Featured Articles

TSMC: Volume production of 16nm FinFET in 2H 2015

TSMC: Volume production of 16nm FinFET in 2H 2015

TSMC has announced that it will begin volume production of 16nm FinFET products in the second half of 2015, in late…

More...
AMD misses earnings targets, announces layoffs

AMD misses earnings targets, announces layoffs

AMD has missed earnings targets and is planning a substantial job cuts. The company reported quarterly earnings yesterday and the street is…

More...
Did Google botch the Nexus 6 and Nexus 9?

Did Google botch the Nexus 6 and Nexus 9?

As expected, Google has finally released the eagerly awaited Nexus 6 phablet and its first 64-bit device, the Nexus 9 tablet.

More...
Gainward GTX 970 Phantom previewed

Gainward GTX 970 Phantom previewed

Nvidia has released two new graphics cards based on its latest Maxwell GPU architecture. The Geforce GTX 970 and Geforce GTX…

More...
EVGA GTX 970 SC ACX 2.0 reviewed

EVGA GTX 970 SC ACX 2.0 reviewed

Nvidia has released two new graphics cards based on its latest Maxwell GPU architecture. The Geforce GTX 970 and Geforce GTX…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Wednesday, 10 April 2013 10:15

Pressure on Dell stepped up

Written by Nick Farrell



Silver Lake deal flawed

An activist investor has dubbed the $24.4 billion leveraged buyout deal with its founder and buyout firm Silver Lake as being flawed.

Southeastern Asset Management owns 8.4 percent of Dell and has published a letter it sent to Dell's board of directors. The letter claims that the company's March 29 proxy statement fails to make a compelling case for shareholders to accept the $13.65 per share offer from Michael Dell and Silver Lake. The letter says Dell's special committee did not properly explore all options.

Quoting Dell's proxy statement, Southeastern said the company did not properly explain why it did not look at a buyout offer that would allow shareholders to elect whether they wanted to be paid in cash or stock.  Dell's special committee needs to negotiate now "in good faith."

Dell has received two alternative buyout proposals from Blackstone and billionaire investor Carl Icahn. It was believed that there might have even been others, and that Dell could ultimately be expected to result in superior offers. Southeastern said that despite this Dell recommended accepting the offer on the table from Michael Dell and Silver Lake.

Nick Farrell

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments