The company says that the shareholder vote will now be held next week. July 18, 2013 6:45 AM PDT Dell's headquarters in Round Rock, Texas. (Credit: Dell) Dell shareholders will have another week to consider whether Michael Dell's $24.4 billion buyout deal is worth taking. Dell announced on Thursday, just hours before the company was to hold a vote on whether it should be taken private, that it has postponed that vote until July 24. The Special Meeting next week will provide shareholders with the opportunity to vote whether they should accept the buyout deal or nix Michael Dell's offer. The move on Dell's part doesn't come as much of a surprise. Although the board's special committee, which was charged with evaluating the offer, as well as shareholder advising firms, have all endorsed the buyout, activist investor Carl Icahn has declined to take his own, alternative offer off the table. Icahn, who partnered with Southeastern Asset Management, has offered shareholders $14 per share in cash, as well as a single warrant for every four shares they sell. That warrant can be redeemed at anytime in the next seven years for one Dell share at $20. Related stories Dell board may delay founder-buyout vote if on track to tank Carl Icahn says he'll sweeten offer for Dell on Friday PC slump shows no sign of slowing, Gartner says Advisory firms follow ISS with Dell buyout endorsement ISS tells Dell shareholders to vote for $24.4B founder buyout Icahn, who along with his partners, currently owns a 13 percent stake in Dell, argues that Michael Dell's offer of $13.65 per share undervalues the company. Icahn is also suspect of Dell's plan to bring the company private. The trouble for Michael Dell and his partner, Silver Lake Partners, seemed to be mounting as the shareholder vote crept closer. Major brokerage houses, including T. Rowe Price, which owns Dell shares, have come out against the Michael Dell deal. And with Icahn continuing in his bid to convince other shareholders that his deal is superior, it wasn't clear whether Silver Lake and Michael Dell could get enough votes to move forward on their proposal. What happens next is up for grabs. However, it's possible that Dell and Silver Lake will improve their offer in the next few days to increase their chances of gaining shareholder approval at next week's vote. CNET has contacted Dell on what its founder's next move might be. We will update this story when we have more information.
The company says that the shareholder vote will now be held next week.
Dell's headquarters in Round Rock, Texas.
(Credit: Dell)
Dell shareholders will have another week to consider whether Michael Dell's $24.4 billion buyout deal is worth taking.
Dell announced on Thursday, just hours before the company was to hold a vote on whether it should be taken private, that it has postponed that vote until July 24. The Special Meeting next week will provide shareholders with the opportunity to vote whether they should accept the buyout deal or nix Michael Dell's offer.
The move on Dell's part doesn't come as much of a surprise. Although the board's special committee, which was charged with evaluating the offer, as well as shareholder advising firms, have all endorsed the buyout, activist investor Carl Icahn has declined to take his own, alternative offer off the table. Icahn, who partnered with Southeastern Asset Management, has offered shareholders $14 per share in cash, as well as a single warrant for every four shares they sell. That warrant can be redeemed at anytime in the next seven years for one Dell share at $20.
Related stories
- Dell board may delay founder-buyout vote if on track to tank
- Carl Icahn says he'll sweeten offer for Dell on Friday
- PC slump shows no sign of slowing, Gartner says
- Advisory firms follow ISS with Dell buyout endorsement
- ISS tells Dell shareholders to vote for $24.4B founder buyout
Icahn, who along with his partners, currently owns a 13 percent stake in Dell, argues that Michael Dell's offer of $13.65 per share undervalues the company. Icahn is also suspect of Dell's plan to bring the company private.
The trouble for Michael Dell and his partner, Silver Lake Partners, seemed to be mounting as the shareholder vote crept closer. Major brokerage houses, including T. Rowe Price, which owns Dell shares, have come out against the Michael Dell deal. And with Icahn continuing in his bid to convince other shareholders that his deal is superior, it wasn't clear whether Silver Lake and Michael Dell could get enough votes to move forward on their proposal.
What happens next is up for grabs. However, it's possible that Dell and Silver Lake will improve their offer in the next few days to increase their chances of gaining shareholder approval at next week's vote.
CNET has contacted Dell on what its founder's next move might be. We will update this story when we have more information.
