Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Michael Dell and Silver Lake Sweeten Buyout Offer

In addition to increasing their bid to acquire Dell (UNKNOWN: DELL.DL  ) from $13.65 a share to $13.75 a share, founder Michael Dell and Silver Lake Partners' latest offer includes a special dividend of $0.13 a share to be paid "at or before closing." The new deal also ensures Dell's $0.08 Q3 regular dividend will be paid by closing, the company announced today.

Michael Dell and Silver Lake's new definitive agreement with Dell's board of directors raises the aggregate total value of the acquisition offer by at least $350 million, according to the announcement. The press release also states that both parties have agreed to lower the break-up fee should the deal be terminated and certain conditions met, from $450 million to $180 million.

The improved offer will now require approval "by the majority of disinterested shares actually voting on the matter," Dell said, rather than assume a non-vote was the equivalent of supporting "any particular initiative." The Dell special committee had rejected this condition earlier this week, before the special dividend payment was added. Under the previous offer, shareholders who didn't vote would be counted against the bid, making it more difficult for Michael Dell's group to get the votes needed in support.

Another result of the enhanced offer is postponing the shareholder meeting scheduled for today. That meeting will now take place Sept. 12. Shareholders of record Aug. 13 will be eligible to vote on the transaction.

Chairman of Dell's Special Committee Alex Mandl said of the revised offer, "We urge all shareholders to support this transaction."

-- Material from The Associated Press was used in this report.


Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 02, 2013, at 11:25 PM, grahamsway wrote:

    This Dell deal continues to be an incredible farce. Management's moves to sweeten the bid should probably be noted in an encyclopedia under "nickeling and diming".

    I'd think maybe next is offering shareholder's a free mousepad but that's probably too much value when compared to their roughly 2% bump so far.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2576492, ~/Articles/ArticleHandler.aspx, 10/1/2016 9:59:41 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 12 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
DELL.DL $0.00 Down +0.00 +0.00%
Dell CAPS Rating: *