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
20 Nov
VELO
Nogle brugere (Pav3 og ebdrups især) har skrevet lidt om FDA's afvisning af Envarsus. Jeg vil gerne ..
47
22 Nov
VWS
Hejsa Mena.  nu har jeg observeret at du kommer i meget spændende diagologer med de fleste skribente..
41
23 Nov
OW
Thomas Eriksson, som er chef for investeringsbanken Carnegie, er blevet kontaktet af Finansinspektio..
29
19 Nov
BIOPOR
  Her følger mine tanker efter Bioporto Q3 regnskab samt efterfølgende investor præsentation   Omsæt..
22
18 Nov
VWS
Normal 0 21 false false false DA X-NONE X-NONE ..
22
22 Nov
VWS
tauser, det korte svar er:......................................................................... ..
21
20 Nov
OW
Jeg er rystet over at OW Bunkers bestyrelse er rystet.   OW Bunkers bestyrelse har i dag via Altor ..
21
19 Nov
VWS
stop nu det børnehave pjat i er jo ikke en døjt bedre selv. Pokerchamp har ændret fint stil fra tidl..
17
18 Nov
EI
Opsang til EI   Det er efterhånden en børnehave i mange af trådene herinde, og jeg kan ikke forstå a..
17
21 Nov
SAS-DKK
Jeg har i de sidste par måneder kikket lidt nærmere på SAS. Årsagen til min nysgerrighed skyldes;   ..
15

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
Announcement No. 17
2
KONE wins order for luxury hotel development in Perth, Australia
3
SOITEC: SOITEC AND SK INNOVATION TO COLLABORATE ON ADVANCED SEMICONDUCTOR MATERIALS
4
RusForest to Present at Pareto Securities’ Emerging Markets Day
5
VOLTA FINANCE - OCTOBER MONTHLY REPORT
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.
 
24 November 2014 07:53:08
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20141120.1 - EUROWEB3 - 2014-11-24 08:53:08 - 2014-11-24 07:53:08 - 1000 - Website: OKAY