Dell Said to Consider Delaying Shareholders’ Vote on Buyout
Dell Inc.’s (DELL) special committee of the board is considering delaying the July 18 shareholder vote on the buyout by founder Michael Dell, seeking a higher bid or time to win support for the $24.4 billion deal, said a person with direct knowledge of the situation.
The committee is exploring a postponement of about a week, said the person, who asked not to be named because the decision-making process isn’t public. The group is likely to make a decision by the morning of July 18 if the votes already cast against the buyout are enough to scuttle it, the person said.
Adjourning the vote would allow buyers Dell and Silver Lake Management LLC time to boost the bid or declare the current offer of $13.65 a share as best and final, said the person. It would also give shareholders, who can recast their votes up until the last minute, a chance to change their minds, according to the person.
The move may help Dell win over shareholders in its fight with billionaire investor Carl Icahn, who has pushed for months for the founder to raise his bid. BlackRock Inc. (BLK), which has a 4.4 percent stake in the third-largest personal-computer maker, voted against the buyout, according to the person. T. Rowe Price Group Inc., which holds 4.1 percent, reiterated its opposition yesterday, saying the buyout doesn’t “reflect the value of Dell.” Read More