Bekker's Blog

Blog archive

Dell Privatization Drama Goes On

The go-shop period on Michael Dell's bid to take Dell private ended quietly on Friday. Turns out the drama wasn't over, and probably won't be for a long time.

This morning, the special committee of Dell's board of directors announced that there are two new offers to compete with Michael Dell's proposal (in partnership with Silver Lake Partners and with Microsoft's backing) to pay $13.65 a share, valuing the company at $24.4 billion.

The Blackstone Group is behind one new proposal that would offer $14.25 a share. Activist investor Carl Icahn, who had already publicly complained about Michael Dell's original offer, is behind the other offer. Icahn's proposal is a complex arrangement involving his current 4.6 percent stake in Dell, equity commitments, an offer of $15 a share up to $2 billion, cash equity financing and other elements.

According to Dell's special committee, either of the proposals could be superior to Michael Dell's offer, but it's too soon to tell. "The Special Committee has not determined that either the Blackstone proposal or the Icahn proposal in fact constitutes a superior proposal under the existing merger agreement and neither is at this stage sufficiently detailed or definitive for such a determination to be appropriate," the committee noted in a statement this morning.

Given the amount of money involved, and the participation of the tactically vocal Carl Icahn, we could be looking at a long period of uncertainty around Dell.

Related:

Posted by Scott Bekker on March 25, 2013 at 11:58 AM


Featured

  • Report: U.S. Web Sites Not Protecting Your Private Data

    According to a study announced Friday by privacy compliance solutions vendor Zendata, many Web sites were found to have woeful data protection practices in place.

  • The 2022 Microsoft Product Roadmap

    Microsoft has a lot in the docket for 2022, including new products like SQL Server 2022, Exchange Subscription Edition and Visual Studio 2022 for Mac.

  • Azure Sphere OS Version 22.01 No Longer Happening

    Microsoft will no longer be releasing its previously announced Azure Sphere version 22.01 operating system, the company announced on Wednesday.

  • Is Microsoft's Free Windows 11 Upgrade Offer Coming to an End?

    Microsoft may be alluding to the end of the free Windows 11 upgrade for Windows 10 users.