Tags: Dell | leveraged | buyout | deal

Dell’s Board Actively Soliciting Alternate Buyout Offers

Wednesday, 06 Mar 2013 09:26 AM

Dell Inc., the computer maker that agreed to be taken private in a $24.4 billion leveraged buyout, said it is “actively soliciting” other offers amid mounting resistance to the deal from some of its biggest investors.

Evercore Partners Inc., the company’s financial adviser, is seeking other bids in a process that concludes March 22, a special committee for Dell’s board said today in a statement. Negotiations may continue after that date if a superior proposal emerges, according to the statement.

Opposition has been gaining steam among some of Dell’s biggest investors since the company said last month that it agreed to a $13.65-a-share buyout by founder Michael Dell and private equity firm Silver Lake Management LLC. The deal, which requires approval from a majority of shareholders excluding Michael Dell, has met with resistance from holders including Southeastern Asset Management Inc. and T. Rowe Price Group Inc.

While the committee said they “negotiated aggressively” and secured “the best possible value,” for investors, they also said that they “insisted on a number of important provisions in the transaction to protect and maximize value for stockholders,” according to the statement.

“These include a low break-up fee and a robust go-shop process under a fee structure that incentivizes our financial advisor, Evercore, to find a superior deal if one exists.”

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Dell Inc., the computer maker that agreed to be taken private in a $24.4 billion leveraged buyout, said it is actively soliciting other offers amid mounting resistance to the deal from some of its biggest investors.
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2013-26-06
Wednesday, 06 Mar 2013 09:26 AM
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