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
24 Jul
 
Jeg betaler gerne 16 kr for en kungfu is, 8 kr for en liter diesel, 200 kr for 11 kg gas, 2,5 mil fo..
60
24 Jul
 
Først så tager skattevæsenet  halvdelen af din indkomst.  - Så tager banken 200 kr i kurtage (Udenla..
38
24 Jul
 
Til gengæld er operation ved sygdom gratis....Hvis du overlever ventetiden.   Til gengæld kan du som..
28
24 Jul
 
Ja, jeg er så stolt af at jeg i dette land betaler 46 procent skat for at se at folk der har ondt i ..
23
11:11
 
Tese Toneangivende vestlige lande er på vej i fuld fart i retning mod ekspansiv finanspolitik. Dette..
22
24 Jul
 
6212's indlæg udstiller hvor uoplyste folk der sidder på den grønne gren er. Det samme gælder de man..
19
17:17
 
  Indledning Over sommeren har jeg læst adskillige bøger om aktier og investering, som har givet mig..
16
23 Jul
FING-B
  smartcard: Fingerprint Cards / Lite av Vad som sades av Jörgen Lantoo i går på Conferans Call / Li..
15
22 Jul
 
slut nu Taastrup   Jeg har været med toget en del år.. og det ved du også godt..    Du er en belastn..
15
24 Jul
 
ER DET IKKE FEDT AT BO I ET LAND SOM DANMARK, uanset hvor meget I brokker jer over det ene eller and..
14

Davidson Kempner Capital Management LP : Form 8.3 - SABMiller Plc

27/07/2016 15:29:03
FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE ..

Man Group PLC : Form 8.3 - Home Retail Group plc

27/07/2016 12:15:38
FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE ..

Rathbones : Form 8.3 - RPC Group Plc

27/07/2016 10:25:39
FORM 8.3 OPENING POSITION / DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE Rule 8.3 of..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
Ashland Inc. reports preliminary financial results for third quarter of fiscal 2016
2
Kambi Group plc signs a contract with R. Franco as its global omni-channel Sportsbook partner
3
ETHAN ALLEN REPORTS FOURTH QUARTER AND FISCAL YEAR ENDED JUNE 30, 2016 RESULTS: FY16 NET REVENUES INCREASE 5.2% WITH DILUTED EPS OF $2.00
4
STMicroelectronics Reports 2016 Second Quarter and First Half Financial Results
5
Black Hills Corp. Reviews Cost of Service Gas Regulatory Approval Strategy

Buy and sell signals

  • Trend
  • Moneymachine

Copyright Euroinvestor A/S 2016   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.
 
27 July 2016 20:12:03
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20160725.4 - EUROWEB5 - 2016-07-27 21:12:03 - 2016-07-27 20:12:03 - 1000 - Website: OKAY