Category Archives: Hardware

Michael Dell Salvages Bid for His Company

When Michael S. Dell’s takeover bid for the company he founded appeared to be in peril on Wednesday, he sprang into action to try to save it.

After a special board committee rebuffed his request to change the voting rules for his nearly $25 billion offer, Mr. Dell held talks with his main partner in the deal, Egon Durban of the investment firm Silver Lake Partners, about a potential compromise, a person briefed on the matter said. The men, who were working from their homes in Hawaii, reached out to the special committee late Wednesday.

By Thursday evening, the two sides began completing a revised agreement and announced new terms Friday morning, keeping the takeover effort alive for at least another month.

Under the terms of the new offer, Mr. Dell and Silver Lake will pay $13.75 a share plus a special dividend of 13 cents a share. Shareholders would still receive a regularly scheduled third-quarter dividend of 8 cents a share.

Mr. Dell is effectively financing the special dividend by taking a bigger discount on the nearly 16 percent stake that he is contributing toward the buyout, people briefed on the matter said. He is now valuing his shares at a little more than $12.50 each, down from $13.36. Read the rest of this entry

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