How the Dell Deal Will Shake Out

Dell (UNKNOWN: DELL.DL  ) has been thinking about a buyout for the better part of a year. The rumor mill caught wind of going-private dealings back in January, and was proven right when founder and CEO Michael Dell presented a solid offer. But he met resistance from corporate raider Carl Icahn, who put together his own competing deal.

The drawn-out process is coming to a close as Institutional Shareholder Services and other investor advisory firms picked a horse in this race. Just in time, too: Dell shareholders are set to vote on Michael Dell's proposal next week.

In the video below, Fool contributor Anders Bylund explains why he sees Michael Dell walking away with the prize -- and why he thinks that Hewlett-Packard (NYSE: HPQ  ) should walk down the same path while there's still time.

Dell is among the most hotly contested buys of 2013, but it's not the only attractive ticker on the market. The Motley Fool's chief investment officer has selected his No. 1 stock for this year. Find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.


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  • Report this Comment On July 11, 2013, at 3:25 PM, Plixer95 wrote:

    I agree. However, there is no mention of the appraisal that Carl Icahn is demanding. If the buyout passes the shareholder vote, the appraisal process begins. What are the potential outcomes of the appraisal? In particular, what if the company appraises below the buyout offer? Does that mean the shareholders lose out? I understand if it appraises to the contrary / higher, the group responsible for the buyout must meet that price.

  • Report this Comment On July 11, 2013, at 3:27 PM, Plixer95 wrote:

    Btw, I work @Dell but have no and have revealed no insider information and these opinions and understandings are strictly my own with no ties whatsoever to the company

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