Tags: Dell | buyout | meeting | vote

Dell Postpones Shareholder Meeting to Vote on Buyout

Thursday, 18 Jul 2013 03:12 PM

Dell Inc. adjourned an investor meeting to vote on Chief Executive Officer Michael Dell’s $24.4 billion buyout without providing any details on the outcome.

The decision, announced at the meeting today at Dell’s Round Rock, Texas, headquarters, prolongs months of jousting between the buyout group and investors seeking a higher price. The meeting was rescheduled for July 24.

“The only way this vote gets delayed is if it gets too close to call,” said Angelo Zino, an analyst at Standard & Poor’s Financial Services in New York. “They could try and stall and get Michael Dell to revise or raise his offer.”

CEO Dell, who founded the company as a college student in 1984, proposed taking it private in February to stem years of ebbing sales and profit as consumers shift away from PCs to tablets and smartphones. He has said it will be easier to make investments in mobile devices and data-center computing without the need to satisfy profit-hungry public investors.

Billionaire investor Carl Icahn, who holds an 8.7 percent stake in Dell, has been agitating to force Dell and Silver Lake to sweeten their $13.65-a-share offer to take the computer maker private.

As of last week, investors opposed to the transaction owned more than 20 percent of Dell shares, according to a report from shareholder adviser Glass Lewis & Co., which is backing Dell’s bid with Silver Lake Management LLC. Opponents may also include Harris Associates LP, Yacktman Asset Management Co. and Pzena Investment Management Inc., according to the report.

The buyout by Dell and partner Silver Lake won key endorsements this month from Institutional Shareholder Services Inc. and two other influential proxy advisory firms. It also has the backing of a special committee of Dell’s board that evaluated potential transactions on the company’s behalf.

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Dell Inc. adjourned an investor meeting to vote on Chief Executive Officer Michael Dell’s $24.4 billion buyout without providing any details on the outcome.
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2013-12-18
Thursday, 18 Jul 2013 03:12 PM
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