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 May
 
Normal 0 21 false false false DA X-NONE X-NONE ..
30
19 May
 
Du undrer mig at flere ikke er begyndt at bekymrer sig for situationen i Grækenland. Hvad enten man ..
25
16 May
FING-B
Der er simpelthen noget som både Dig og Denne Swiftfup har misforstået. Det som i begge har misforst..
22
21 May
 
”Verdensøkonomiens nuværende vigtigste sektor må være Kinas boligmarked. Der står 50 mio. lejlighede..
20
19 May
 
Hej alle,   Herunder er alle finanshusenes vurderinger og anbefalinger af C20 selskaber + de 'Large ..
20
19 May
GEN
Mon ikke vi nærmer os de 600 efter JNJ´s præsentation i morgen - der vil komme fokus på Daratumumab ..
20
18 May
VELO
Jeg har desværre ikke tid til en længere udredning, og heller ikke til en lang dialog, men jeg er ik..
17
16 May
FING-B
xo - dog påfaldende hvor aktiv du har været i en debat om et selskab som du 'faktisk er bedøvende li..
17
18 May
BIOPOR
  Huj hej hvor det går. Endelig sker der noget med kursen. Og selskabet står også med nogle ret inte..
15
16 May
FING-B
Typisk et fjols som dig, at sige sådan i stedet for at forholde dig til det jeg skriver. 
15

Notification of Transactions of Directors

22/05/2015 15:32:07
Intermediate Capital Group plc (the "Company") 22 May 2015 Notification of Transactions of Directors In accordance with the UK Financial Services Aut..

Holding(s) in Company

22/05/2015 13:38:48
For filings with the FSA include the annex   For filings with issuer..

Form 8.3 - Greene King plc

22/05/2015 10:49:20
FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE ..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
BLACKROCK INCOME STRATEGIES TRUST PLC - Half-yearly Report
2
Flowserve Announces Quarterly Cash Dividend of $0.18 Per Share
3
Flowserve Holds 2015 Annual Meeting of Shareholders
4
HFF closes $185.5 million sale of LaPlaya Beach Resort in Naples, Florida
5
Share Buy-back progrmme at SP Group A/s

Buy and sell signals

  • Trend
  • Moneymachine

Copyright Euroinvestor A/S 2015   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.
 
23 May 2015 05:13:28
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20150519.1 - EUROWEB5 - 2015-05-23 06:13:28 - 2015-05-23 05:13:28 - 1000 - Website: OKAY