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Maneuvering Continues For Control of Dell 57

Posted by samzenpus
from the you-bought-dell-dude dept.
An anonymous reader writes "Just as Carl Icahn's months-long, high-profile bid for control of Dell seemed to have run its course, came the announcement that Dell's board had postponed a shareholder's vote on the bid from Michael Dell and investment firm Silver Lake Partners, to take private the company that Dell had started in a University of Texas dorm room twenty nine years ago. The postponement indicated that Dell was not confident that their $24.4 billion ($13.65 per share) deal had the necessary votes. Icahn and his main ally, Southeastern Asset Management, claim that the proposed deal undervalues the company and its upside potential; Icahn's latest proposal is to keep the company public, but to offer $14 per share plus upside warrants, for every share tendered by stockholders. The latest wrinkle is apparent tension within the Dell/Silver Lake team; Silver Lake reportedly feels entitled to the $450 million buyout fee specified in the deal's language, if any alternative bid from Icahn succeeds within a year; Dell and the board feel that Silver Lake would only be entitled to expenses in that case, perhaps amounting to a few tens of millions USD. The Bloomberg story also reports that Michael Dell has at times been unable to reach his Silver Lake counterpart (a longtime friend) on the phone to discuss possibly sweetening the bid."
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Maneuvering Continues For Control of Dell

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  • by arcite (661011) on Monday July 22, 2013 @04:21AM (#44348381)
    I'd shut it down and give the money back to the shareholders.
    • I'd shut it down and give the money back to the shareholders.

      Ironically that is exactly what Apple did with iBonds. Foolishly for exactly the same reasons pursuit of short term profits over market share (long term profits).

      Its odd that Apple fans remember this but fail to remember the young Jobs scathing comments regarding this very strategy when it was still a computing company...and then proceeding to follow the same path in his reinvention of Apple as an electronics company.

      • Re: (Score:1, Interesting)

        by Anonymous Coward

        Worry not, now that he can no longer do his stage shows people will begin remember what he did in life. As is common with dead and visible persons. Eventually he will be seen in the same manner Bill Gates is. A nigh-useless dweeb that preached good practices and in almost the next breath proceeded to threaten litigation and other things I'd rather not post so as to preserve my decent mood. Eventually the fine folks like Woz who made Apple what it is, with Steve overworking him and selling features he did no

        • by mattack2 (1165421)

          More details about the "powerful BASIC interpreter".

          There obviously is Integer, then later AppleSoft (licensed from Microsoft).

          How are those not as powerful as other BASICs available at the time (esp AppleSoft, since it's almost the identical BASIC used in other computers of the time).

      • by Sockatume (732728)

        Steve Jobs was responsible for Apple's 2013 bond issue? They've got better tech than I thought.

      • Why the hate for iBonds? Is it a general dislike of debt or is there something specific?

        Apple did need to return cash to its shareholders. Apple was basically borrowed at the bottom of the market for next to nothing. If inflation gets back to something normally then less than nothing. (as an aside, Apple should not have done a stock buyback – it’s stock was overvalued.)

        • Why the hate for iBonds? Is it a general dislike of debt or is there something specific?

          Why would I hate that? Peoples language has just got so weak. iBonds were simply a way of limiting the damage of its falling knife share price. It has been fairly stable since...although we will see what happens after this quarters announcement in a couple of days time.

          The reality is though I would have rather have seen Apple doing something interesting with their money instead of giving it back to shareholders (and attracting unwanted Government attention for not even paying token tax). Like in context of

    • by tuppe666 (904118) on Monday July 22, 2013 @05:45AM (#44348651)

      I'd shut it down and give the money back to the shareholders.

      Ironically this was from a time when Apple had failed while wintel had won. Leaving Jobs begging to Microsoft resulting in a settled lawsuit a few million in the bank...and a crippled office port. It only sounds stupid in retrospect because Apple from that dark time (A time I repeatedly point out its returning to), by reinventing itself, doing exciting things, leading in new markets. It became something different...better.

      The World has changed since then Wintel are bleeding the PC industry dry with Microsoft & Intel cashing on on 70% gross profit margins...in the Desktop Apps(The Desktop destroyed by Microsoft...living on only in name...Windows) market that is not sustaining it...and Dells slice of the pie (and the Pie) is shrinking...The Days of Dell earning more money than Microsoft are long gone.

      This move is about Dell reinventing itself doing exciting things, leading in new markets without the quarterly shareholder distractions (allegedly) , Something Apple is going to learn from in 2 days time.

      Hopefully they will have the good sense not to be remain reliant on Wintel.

  • I also feel entitled to $450 million for doing nothing.

    Gimmee!

  • Does anyone else think this whole sage would be much simpler if the media consistently referred to people:dell or company:dell?

    • by sjames (1099)

      Meanwhile, where is the farmer in all of this? And why don't they ask him to insure the deal?

      I hear he's out standing in his field.

  • I am usually skeptical when people want to take a company away from the person who founded it. For more fun stories about private equity, look here http://www.dailyfinance.com/2012/12/15/dividend-recaps-how-private-equity-is-sucking-the-life-out-of-g/ [dailyfinance.com]
  • I have an idea (Score:3, Informative)

    by slashmydots (2189826) on Monday July 22, 2013 @09:17AM (#44350379)
    Anyone wanting to buy Dell should have to set up and use one of their awful products for 1 day and then call tech support once. There would be zero buyers. Seriously, buying Dell is like buying a car just based on the company's marketing and image without actually looking under the hood to find out it's a complete piece of crap (in other words a Saturn or Kia). Except Dell is more like a Yugo on craigslist with a flashy paint job and astroturfed reviews. They're 2nd to last in laptop quality, dead last in support quality, and no business with an IT purchaser who has any kind of clue even considers them as a vendor anymore.

    So if you're reading this and thinking "hey, I buy from Dell all the time!" first of all, look at your hardware failure numbers. Secondly, fire yourself. Third, note that last time a business I was contracted to work at for a computer replacement project ordered 120 Dell laptops ($800 models btw), 20 were RMAed right out of the box with hardware defects. I guarantee that cost Dell more than it would have to simply build them all with good parts in the first place.
    • Anyone wanting to buy Dell should have to set up and use one of their awful products for 1 day

      Ignoring the usual awful *car* analogy...I mean why describe one industry secondary I do understand with an analogy of one I don't. I bought a Dell monitor recently. It is a no frills,with money off trade in...and was head and shoulders cheaper than anything else in the market, and on the whole perfect.

      That said every single person. I have ever spoken at Dell, was unpleasant and wanted to transfer me to someone else as soon as possible. Now here is the thing. that has become the behaviour of *every* company

      • Samsung or LG made that screen. Oh wait, it's Dell so probably AU Optronics. Either way, they don't make screens.
      • by jp10558 (748604)

        I have ever spoken at Dell, was unpleasant and wanted to transfer me to someone else as soon as possible.

        Hmmm, it depends on the company, and what you're trying to do. Call Ally, or Lenovo Think branded support, or Frontier line support, or Sears service ... I've often been the one rushing off the phone (not that they're wasting my time, just that they aren't rushing me off either).

        Maybe you're unlucky to deal with bad companies? I'm not saying that many or even most companies are crap on the phone, but I

    • by Anonymous Coward

      Dell PowerEdge servers are among the best available. The R620 is a freaking beast. Equallogic & Compellent are both industry leading SANs. We have about 3000 Dell computers, OptiPlex 3xx, 7xx & 9xx lines, and Latitude D & E series laptops, and our annual failure rate is under 1%. We lose way more systems to physical damage than we do to hardware failure.

      On the business side, if you pay for it, their support is amazing. If you want amazing free support, dream on. If that's something you val

      • HP servers are good too. That doesn't mean their laptops and desktops are any good.
      • by jp10558 (748604)

        Wow, I guess it depends, but Dell PowerEdge servers are the bane of our existence. Inability to get clear answers from the website or phone support on CPU upgrades (to go from single to dual), weird reproducible hangs seemingly due to BIOS, painful BIOS upgrade procedure.

        We are extremely happy to have replaced them with IBM System X servers. All around much better experience, and we don't have to pay extra for good support - all included in the purchase price. The "savings" of Dell are often in getting rid

    • You know, it never matters what the product is. Computers, airlines, hotels, cars...whatever. There's always someone who had a bad experience and extrapolates his bad experience onto the entire world. Guess what...people use Dell computers every day and they don't catch fire. They fly United, stay at Super 8, and drive cars made in Detroit. And the world continues. Funny, that?
      • No, I'm mostly looking at a sampling of over 75,000 laptops on a 3rd party extended warranty company's annual report. Dell is the 2nd most likely to fail and has the worst customer service rating. That's a high enough sampling to be accurate.
  • by ISoldat53 (977164) on Monday July 22, 2013 @09:37AM (#44350575)
    Now Mikey knows how the rest of us feel when we try to call him.
  • What exactly is the future of Dell, anyway?

    Kill off all of the consumer business and focus solely on the business market (presumably excluding the very large enterprise market where Dell can't complete with traditional consulting companies like Accenture or highly integrated solution providers like IBM)?

    It seems like the consumer market is what is collapsing more so than the business market. Tablets may replace or string out the lifecycle of consumer PCs, but they're an adjunct if used at all in businesse

  • I've had over ten years of watching you and I know exactly where you're fucking up.

    You switched horses in the middle of a race (Home-based vs portable)

    You should have established dominance in the PC market, then used that to make a PC-based tablet.

    But you didn't wait for said dominance, and now you're floundering.

    I told you six years ago. Should I release those e-mails to embarrass you further?

    I'm waiting, Dell.

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