Dell Founder Ups Bid, Seeks Voting Rule Changes in Bid to Take Company Private
by: Andrew Schneider, July 25, 2013 5:07:00 am
The new offer from founder Michael Dell and investment firm Silver Lake Partners would boost the total paid to shareholders by about $150 million to more than $24 billion. The proposal came just hours before Dell shareholders were to vote on the buyout group’s original offer Wednesday afternoon. The shareholder meeting is now rescheduled for August 2.
The offer includes a provision that would discount any abstentions from the final vote tally. Previously, such abstentions were treated as “no” votes. Jonathan Marino is senior editor covering private equity at TheDeal.com.
“It was pretty obvious, I guess, to Michael Dell and the Silver Lake Partners that they weren’t going to get the deal across at $13.65, and so their new bid, combined with the strings attached, kind of signifies the way that they’re willing to take this and how far.”
Shareholders Carl Icahn and investment firm Southeastern Asset Management quickly came out against the proposal. Dell’s special committee overseeing the transaction is expected to respond to the revised offer by next week.