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
PNDORA
  Jeg har flere gange analyseret Pandora, senest den 20 april og inden da efter årsregnskabet i febr..
115
22 May
 
Hej IceT : Det er kloge ord, du kommer med her. Jeg trak mig tilbage, da jeg var 53 år. Min arbejdsp..
32
20 May
PNDORA
LCB84 Earnings yield er jo den omvendte P/E, og dermed det direkte afkast du får af den pris aktien ..
31
23 May
 
For nogle af mine kunder, laver jeg en kvartals-analyse over, hvordan de Nordiske selskabers indtjen..
25
20 May
PNDORA
investor1 Her er lidt indspark til din vurdering. Pandora tjener aktuelt 53 kr. pr. aktie om året. J..
21
19 May
BAVA
Slap dog af bamse. 1.000 i 2017 er et temmelig vildt gæt. Og det er vel at mærke et gæt, du giver jo..
15
24 May
PNDORA
Nej for det er Breaking news.
12
23 May
 
Man korser sig når man ser hvad nogle mennesker kan finde på og skrive, blot fordi de kan gøre det a..
12
23 May
 
Hold øje med at politikere og andre nu som sædvanligt vil mane os til "at stå sammen" og "ikke lade ..
12
20 May
PNDORA
Super flot Alf. Gid vi alle (mig selv incl.) ville kunne levere tilsvarende bidrag til dette forum. ..
12

P. Schoenfeld Asset Management LLP : Form 8.3 - Booker Group plc

26/05/2017 15:00:03
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: P. Schoenfeld Asset Management LLP (b) Owner or..

Alliance Trust PLC : Net Asset Value(s)

26/05/2017 13:45:51
ALLIANCE TRUST PLC                                    At the close of business on Thursday 25 May 2017: The Company's NAV per ordinary share, valued on a bid price basis with Debt at Par, was -       excluding income, 733.6p -       including income, 743.3p  The Company's NAV per ordinary share, valued on a bid price basis with Debt at Fair Value, was -       excluding income..

Statement re Notification of Transactions of Directors - GRANT OF SHARE AWARDS

26/05/2017 10:15:05
Intermediate Capital Group plc 25 May 2017 Notification of Transactions of Directors GRANT OF SHARE AWARDS In accordance with the UK Financial Services Authority Disclosure and Transparency Rule 3.1.4, the Company wishes to announce that on 25 May 2017 PLC Equity Awards and Deferred Share Awards under the Intermediate Capital Group Omnibus Plan were granted to the Directors named below over ..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
GoProto to Deliver HP Multi Jet Fusion Parts to a Hungry Marketplace
2
TANGOE MERGER INVESTIGATION ALERT - Andrews & Springer LLC Is Seeking More Cash for Shareholders of Tangoe, Inc.
3
Surgery Partners, Inc. Announces Receipt of Requisite Consents and Expiration of its Consent Solicitation Relating to its Senior Notes
4
American Indian College Fund Urges Supporters to Reject Proposed Federal Budget Cuts to Education as A Betrayal of American Dream and Treaty Obligations
5
LAWSUIT ALERT – Andrews & Springer LLC Announces That A Securities Class Action Has Been Filed Against AdvancePierre Foods Holdings, Inc. - APFH

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.
 
26 May 2017 17:54:43
(UTC+00:00) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20170517.1 - EUROWEB7 - 2017-05-26 18:54:43 - 2017-05-26 17:54:43 - 1000 - Website: OKAY