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Dell Special Committee Backs Michael Dell Buyout Bid 38

DavidGilbert99 writes "In a surprising move, the special committee set up to decide which buyout offer was best for Dell has chosen to back the bid from founder Michael Dell, which promises the shareholders a smaller payday and will see him remain the head of the company." Their SEC filing on the matter indicates they are not confident that Icahn's counter-offer would actually provide the promised $12/share dividend.
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Dell Special Committee Backs Michael Dell Buyout Bid

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  • seems reasonable (Score:5, Insightful)

    by Trepidity ( 597 ) <> on Wednesday June 05, 2013 @01:11PM (#43915985)

    In particular, the deal comes with a "majority of the unaffiliated" vote requirement, meaning that for it to go through, a majority of shareholders other than Michael Dell must vote in favor. If that happens, i.e. a majority of non-Michael-Dell shareholders think he should be allowed to purchase and continue running the company, then there is no reason it shouldn't happen.

    • by AuralityKev ( 1356747 ) on Wednesday June 05, 2013 @01:22PM (#43916093)
      But... Like... That's not NEARLY as sensational sounding. In fact, it seems goddamn downright reasonable and logical. That's not how I like my news!
      • Don't worry. Some irresponsible journalist will find the minority shareholders that don't want Michael Dell to buy the company out and get a nice story plastered all over Forbes and the Wall Street Journal. They'll probably spin it as a failure of the corporate model and that new, stronger laws should be passed to give shareholders more leverage.

    • >> If that happens, i.e. a majority of non-Michael-Dell shareholders think he should be allowed to purchase and continue running the company, then there is no reason it shouldn't happen.

      Of course, assuming Michael Dell does not have undue influence on any of the other shareholders or those people are added to the "is Michael dell class". (FYI, this is a bad assumption).

  • They always end up with the right answer - just ask Dick Cheney!
  • by Deflagro ( 187160 ) on Wednesday June 05, 2013 @02:16PM (#43916555)

    I wonder if he will take drastic measures to cut home and small box support like IBM did. Dell is going to a services only model and big enterprise stuff where the pretty margin lives. It's hard to cut half of your income and survive Wall Street but I'm guessing that's the idea.

    I have a feeling there will be pretty huge internal changes.

    • Small stuff? Dell is America's #1 PC maker. They're #3 worldwide, behind HP and Lenovo. Granted, PCs aren't selling like they did 10 years ago because the market has matured (except in developing countries) and computers are so powerful that there is less incentive to replace them every 3-5 years like there was years back. Nevertheless, they still sell a LOT of PCs and I highly doubt they'd just throw that business away.

      • They do sell a lot but they don't make a lot from it. The margins are almost negative after all the overhead that goes into supporting it. It's really all Dell's fault for making computers so cheap with their crazy business model.

        Let's just say I have a long personal history with them and it wouldn't surprise me one bit. Consumer took a big hit a couple years ago because they were ignoring that segment to coddle services. They spent billions on Perot and infrastructure for cloud services. They are changing

  • The only thing stupider than buying a Dell is buying Dell itself. He must not own one at home or he wouldn't even consider it.
    • by Xest ( 935314 )

      Maybe that's what he wants to change? Take Dell back to the day where people actually wanted their systems because they actually stood for quality once?

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