08/03/2013 23:04:00

Dell Assures Employees Uncertainty about Buyout Deal Is 'Part of the Process'

By Nathalie Tadena

Dell Inc. (DELL) moved to reassure employees about the computer maker's planned $24.4 billion leveraged buyout by founder Michael Dell, telling them in an internal note that uncertainty and speculation related to the deal "is all part of the process being led by our board of directors."

"As expected, this proposed transaction has generated significant interest and commentary from media, investors and other stakeholders," Dell wrote in note sent to employees Friday. "There will continue to be speculation, conjecture and uncertainty as the process moves forward."

In its letter, which was disclosed in a Securities and Exchange Commission filing, Dell asked employees to keep developments in proper perspective and went on to outline details about the plan.

Dell noted the special committee is currently managing a 45-day so-called "go-shop" period, during which it will actively solicit and evaluate alternative proposals. The "go-shop" period ends on March 22 and the committee will be able to continue discussions with parties that submitted a qualifying proposal during that period.

The deal is expected to close before the end of the second quarter, subject to shareholder approval. The transaction must be approved by the holders of a majority of Dell's shares, excluding shares held by Mr. Dell and certain members of the company's management and board.

Dell also noted its fiscal 2014 business plan remains unchanged and said it remains "committed to completing this transaction as seamlessly as possible."

Over the past few weeks, several Dell shareholders have opposed Mr. Dell's offer. Southeastern Asset Management Inc., Dell's largest outside shareholder, criticized the buyout at the current price and hired a firm to convince other shareholders to oppose the deal.

On Thursday, activist investor Carl Icahn said he would replace Dell's board and pursue "years of litigation" if the company refused to accept his demand for a refinancing that would pay a hefty dividend to shareholders. Prodding the company to reject the buyout offer that it agreed to last month and endorse his alternative, Mr. Icahn also disclosed he owns a "substantial" stake in Dell.

Dell shares were up by four cents to $14.20 after hours. The stock has jumped 40% since the start of the year.

-Write to Nathalie Tadena at nathalie.tadena@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

March 08, 2013 18:04 ET (23:04 GMT)

Copyright (c) 2013 Dow Jones & Company, Inc.

Post comment

Related debate

  • 1 week
  • 1 month
  • 1 Year
19 Mar
BAVA
Efter en fantastik uge vil jeg godt lige prøve at lave en evaluering af hvorfor jeg mener at der er ..
64
21 Mar
PNDORA
  Jeg har flere gange analyseret Pandora, senest efter årsregnskabet. Den seneste tid har kursen vær..
59
21 Mar
E:QEC
At jeg gør som jeg gør, og et lille indblik i hvilke gabs vi har liggende som sagtens kan fyldes på ..
24
17 Mar
BAVA
Du skrev tusindvis af indlæg om, hvordan Genmab ville fejle. Du påstod at de aldrig ville få Darzale..
24
21 Mar
FING-B
Baronen84, jeg tager hatten af for dine RTX aktier, det er flot set :-)   Men at være hånlig overfor..
18
19 Mar
I:DAX
Vorherre bevares!
18
22 Mar
OMXC25
Det var så vigtigt vi skulle stemme. Jeg er glad for det blev et NEJ.   EU sagde vi ikke ville få en..
17
23 Mar
I:DAX
@marc55.   Lad mig give dig et velment råd.   Jeg er ikke en gammel sur mand (hverken gammel eller s..
15
21 Mar
VWS
idiot
15
23 Mar
VWS
Dong Energy og Vestas får meldinger om off shore industrien, hvor de store olieselskaber øjnene muli..
14

Rathbones : Form 8.3 - [Booker Group Plc]

24/03/2017 10:39:04
FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE Rule 8.3 of the Takeover Code (the "Code") 1.         KEY INFORMATION (a) Full name of discloser: Rathbone Brothers PLC (b) Owner or controller of ..

Alliance Trust PLC : Transaction in Own Shares

24/03/2017 07:00:29
24 March 2017  Alliance Trust PLC TRANSACTION IN OWN SHARES  The Board of Alliance Trust PLC ("the Company") announces that on 23 March 2017 the Company purchased for cancellation 716,011 ordinary shares of 2.5p each at a price of 683.6634p per share.  Therefore, the total number of voting rights in the Company is now 365,885,066.    The above figure (365,885,066) may be used by sharehold..

Alliance Trust PLC : Net Asset Value(s)

23/03/2017 15:29:25
ALLIANCE TRUST PLC                                    At the close of business on Wednesday 22 March 2017: The Company's NAV per ordinary share, valued on a bid price basis with Debt at Par, was -       excluding income, 721.9p -       including income, 727.7p  The Company's NAV per ordinary share, valued on a bid price basis with Debt at Fair Value, was -       excluding inc..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
Primus Power Announces Completion of $32M Financing Round
2
Guggenheim Macro Opportunities Fund Earns Third Consecutive U.S. Lipper Fund Award for Consistent Risk-Adjusted Performance
3
Bellicum Pharmaceuticals Announces Pricing of Public Offering of Common Stock
4
Advanced Emissions Solutions Announces the Lease of an Additional Refined Coal Facility
5
The “Brain” of the Space Launch System RS-25 Engine Passes Critical Test

Buy and sell signals

  • Trend
  • Moneymachine

Copyright Euroinvestor A/S 2017   Disclaimer and Terms of Use
Quote information is delivered by Interactive Data.
Data is delayed 15-20 minutes according to the distribution agreements set by the different exchanges.
 
24 March 2017 14:12:09
(UTC+00:00) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20170324.1 - EUROWEB4 - 2017-03-24 15:12:09 - 2017-03-24 14:12:09 - 1000 - Website: OKAY