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
23 Apr
BIOPOR
Til dem der måtte være interesseret så har jeg skrevet lidt om Bioporto GF og min efterfølgende snak..
31
18 Apr
VWS
Der har ikke været skrevet meget om hvad det nye MHI Vestas JV vil i Kina. Det har været nævnt kort ..
15
20 Apr
GEN
Jeg er normalt ikke så let irritabel, men nu må det snart være nok. Igennem den sidste måned har j..
14
22 Apr
GEN
Lad nu være med at træde hinanden over tæerne gang på gang i jagten på, hvem som har mest ret. Det e..
12
23 Apr
TOPO
Asymetrisk information i markedet?!     Antagelsen er, at der er foretaget en relativt dybdegående d..
9
21 Apr
TOPO
Jeg er meget enig. Hvis man ser på det tilsendte materiale, så får vi som Topo-aktionærer +50% ift. ..
9
21 Apr
EI
Jeg syntes, at mange af bemærkningerne ovenfor viser, at janteloven stadig er gældende. "Han skal ik..
9
21 Apr
E:BARC
Normal 0 21 false false false NO-BOK X-NONE X-NONE ..
9
18 Apr
VWS
Den overvejelse vil jeg i bedste fald kalde irrelevant. For det første er længder af kyststrækninger..
9
22 Apr
GEN
Hvis GW kun skulle udtale sig om de aktier, han virkelig ejer ville der blive meget tomt på disse si..
8

Tech Companies Send Criticism Along With NSA-Related Data -- Update

04/02/2014 00:06:00
By Danny Yadron Technology companies including Google Inc. and Microsoft Corp. released new figures on the amount of data requests they received from U.S. ..

U.S. Hot Stocks: Hot Stocks to Watch

03/02/2014 14:07:00
Among the companies with shares expected to actively trade in Monday's session is Herbalife Ltd. (HLF). Herbalife Ltd. (HLF) raised its fourth-quarter outl..

Pfizer Study Meets Primary Endpoints

03/02/2014 13:05:00
Pfizer Inc. (PFE) said Monday that a Phase 2 trial of its advanced breast cancer treatment met its primary endpoint. Pfizer said a study comparing the effec..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
NUMERICABLE GROUP : 2013 FINANCIAL REPORT NOW AVAILABLE ON GROUP WEBSITE
2
Media Advisory/Bombardier Inc.: Annual Meeting of Shareholders and Conference Call
3
Minerals Technologies Reports First Quarter Earnings of $0.58 per Share, Excluding Special Items, a 5-Percent Increase over Prior Year
4
Cliffs Natural Resources Inc. Reports First-Quarter 2014 Results and Maintains Full-Year 2014 Volume and Cost Outlook
5
Bavarian Nordic Welcomes Gerard van Odijk as New Chairman of the Board
Euroinvestor around the globe: Euroinvestor.dk | Euroinvestor.se | Euroinvestor.no | Euroinvestor.fr | Forexinvestor.com| Wisselkoersen.nl | Valuta.se | Valutaveksel.no | Divisas.es | Valute.it
Copyright Euroinvestor A/S 2014   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.
 
25 April 2014 06:00:39
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20140424.2 - EUROWEB7 - 2014-04-25 07:00:39 - 2014-04-25 06:00:39 - 1000 - Website: OKAY