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Dell succeeds in taking his company private

Dell succeeds in taking his company private

Dell is now to become a privately-held company once more, with a renewed offer from its founder and his investment group being accepted by the required majority of shareholders.

Michael Dell has succeeded in his battle to take his company private, agreeing a deal with shareholders valued at $24.9 billion.

Dell's plan to purchase his company back from shareholders, in partnership with the Silver Lake investment group and cash from Windows creator Microsoft, was announced back in February but not everyone was keen on the plan: shareholders, including the outspoken Carl Icahn, put up a considerable resistance which saw the buyout offer boosted to its current $24.9 billion level.

That extra sweetener of $500 million appears to have done the trick, with Dell announcing today that the buyout will go ahead with official agreement from the company's current shareholders.

The announcement comes days after Icahn, the most vocal of Dell's opponents in the deal, wrote a letter to shareholders accusing Dell of treating the company like a 'dictatorship' but admitting that he could not win the battle if his opponents keep redrawing the rules. '[We] argued that stockholders should not give up the huge potential of Dell and therefore should reject the proposed transaction. We won, or at least thought we won, but when the board realised that they lost the vote, they simply ignored the outcome.

'We jokingly ask "What’s the difference between Dell and a dictatorship?" The answer: Most functioning dictatorships only need to postpone the vote once to win,
' a clearly bitter Icahn wrote. 'While we of course are saddened at our losing the battle to control Dell, it certainly makes the loss a lot more tolerable in that as a result of our involvement, Michael Dell/Silver Lake increased what they said was their "best and final offer."'

Dell, naturally, is chuffed with his victory. 'I am pleased with this outcome and am energised to continue building Dell into the industry's leading provider of scalable, end-to-end technology solutions,' he claimed in a statement to press following the final shareholder vote on the deal.

Those with shares in Dell can expect to receive $13.88 per share, a slight premium over the company's closing price of $13.85 on the NASDAQ exchange last night.

16 Comments

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deathtaker27 13th September 2013, 12:19 Quote
It will be interesting what happens now :)
Snips 13th September 2013, 13:00 Quote
I think this could be the making of the company.
himaro101 13th September 2013, 13:52 Quote
We'll have to sit, wait and see now
Dell needs a strong leader who knows the market and what consumers actually want but isn't afraid to break a few eggs
Same goes for Microsoft for that matter.
schmidtbag 13th September 2013, 15:24 Quote
All I really feel like saying about this article is "shut the hell up Icahn". Seriously, what a sore loser who probably does nothing with his life but stock market stuff and just didn't want to sell yet. If he really cared that much about the company and had opinions that actually mattered, he could have tried getting a job there as a REAL employee.

While Dell is one of the very few computer companies I'd like to see vanish, they have every right to want to go private. It's not about a dictatorship, it's about not listening to dumbass stock holders like Icahn whose decisions are probably the reason Dell is in such bad shape in the first place. Dell isn't a country - people are allowed to boycott them. If a product doesn't sell, they'll do something else to please the customer. You don't need stockholders to tell you that. A real "dictatorship" of a company is Apple, where they don't do what the customer wants but rather tell their customers what they want.

If Dell were private, I'm sure they'd be able to do things that their shareholders would have shunned but would have actually got them somewhere. The corporate world is a pathetic one, especially in the media world.
Gareth Halfacree 13th September 2013, 15:28 Quote
Quote:
Originally Posted by schmidtbag
All I really feel like saying about this article is "shut the hell up Icahn". Seriously, what a sore loser who probably does nothing with his life but stock market stuff [...]
Ahem.
schmidtbag 13th September 2013, 15:45 Quote
Quote:
Originally Posted by Gareth Halfacree
Ahem.

That doesn't change my point. That article shows he's just a generous person who gives money (that he probably earned in investments) to make something better or help someone out. I didn't say he was a bad person, just that he's whining about something that he probably doesn't know enough about. He knows where to put his money and how to profit from that, and Dell is/was a good place to invest in. But knowing where to invest and knowing what's popular doesn't mean you know what's good for a technology company. Normally, I wouldn't bother saying that, but he's fighting to have his voice heard in a company that is failing hard. I'm not sure how much he invested in Dell or how many decisions he ended up making for them, but, maybe he's partially the reason for this.
John_T 14th September 2013, 01:16 Quote
Quote:
Originally Posted by Gareth Halfacree
Quote:
Originally Posted by schmidtbag
All I really feel like saying about this article is "shut the hell up Icahn". Seriously, what a sore loser who probably does nothing with his life but stock market stuff [...]
Ahem.

On paper that looks absolutely fantastic, but, I don't think it's quite as straightforward as that. For one thing, tax and charity in the US is organised pretty differently to the UK. If you're a very wealthy person donating money to charities then it's 'tax deductible', meaning you can write much of it off as an expense. Not saying there's 'no' generosity involved, (obviously there still is) but that a lot of it was money due out the door anyway - you're just diverting it from the tax man to your own pet project in way that you can't over here.

Also, I'm pretty sure I looked at his page at the start of the year and read a huge segment under the title of 'controversies' (or something similar) - the whole of which seems to have mysteriously disappeared now. I'm sure that would have absolutely nothing to do with anyone connected to him, obviously.

I don't agree with everything schmidtbag said, but I've heard more than one source refer to him & his company as blood-sucking vampires. (Matter of personal opinion I suppose - some people would take that as a compliment anyway).

Tossing a few million dollars around at very public charities - to which you make sure you have your name very boldly associated - doesn't really make up for ruthlessly squeezing the life out of companies, (and their millions of employees, customers and investors) while making yourself billions in the process. The phrase 'throw a dog a bone' springs to mind...

But hey, I'm just a grumpy old cynic so what the hell do I know? :)
bowman 14th September 2013, 04:12 Quote
This is great news. Dell can finally start making exciting products without a bunch of shortsighted money-hopping investors shrieking every single time.
Corky42 14th September 2013, 04:46 Quote
Quote:
Originally Posted by John_T
Also, I'm pretty sure I looked at his page at the start of the year and read a huge segment under the title of 'controversies' (or something similar) - the whole of which seems to have mysteriously disappeared now. I'm sure that would have absolutely nothing to do with anyone connected to him, obviously.

I would take a guess you mean that he was one of the first Corporate raiders (think Gordon Gekko).
http://en.wikipedia.org/wiki/Corporate_raid
Quote:
Carl Icahn developed a reputation as a ruthless "corporate raider" after his hostile takeover of TWA in 1985. The result of that takeover was Icahn systematically selling TWA's assets to repay the debt he used to purchase the company, which was described as asset stripping.
law99 14th September 2013, 10:04 Quote
"Hostile takeover" and "asset stripping" means "****"
Woodstock 14th September 2013, 14:04 Quote
If you don't like the Dell dicatorship why would you fight to remain part of it
greypilgers 15th September 2013, 21:43 Quote
Quote:
Originally Posted by Gareth Halfacree
Quote:
Originally Posted by schmidtbag
All I really feel like saying about this article is "shut the hell up Icahn". Seriously, what a sore loser who probably does nothing with his life but stock market stuff [...]
Ahem.

Wikipedia.. LoL... Other nonsense is also available...
ssj12 15th September 2013, 22:59 Quote
Quote:
Originally Posted by greypilgers
Quote:
Originally Posted by Gareth Halfacree
Quote:
Originally Posted by schmidtbag
All I really feel like saying about this article is "shut the hell up Icahn". Seriously, what a sore loser who probably does nothing with his life but stock market stuff [...]
Ahem.

Wikipedia.. LoL... Other nonsense is also available...

... Wikipedia is a damn good source now a days...
Gareth Halfacree 16th September 2013, 09:46 Quote
Quote:
Originally Posted by ssj12
... Wikipedia is a damn good source now a days...
Wikipedia ain't a source, but it is a source of sources. As for the nay-sayers, I never said Icahn was a good guy - I merely pointed out that, contrary to claims, he has interests and hobbies that lie outside the stock market. As for greypilgers: if you can disprove the existence of the Carl C. Icahn Center for Science, Icahn Scholar Programme, Carl C. Icahn Laboratory, Icahn Medical Institute, Icahn School of Medicine at Mount Sinai, Icahn Institute for Genomics and Multiscale Biology, Icahn House East and Icahn House West, or his humanitarian awards, then please: feel free to edit the Wikipedia page accordingly. That's sort of the point of Wikipedia, really...
John_T 17th September 2013, 00:41 Quote
Quote:
Originally Posted by Gareth Halfacree
As for the nay-sayers, I never said Icahn was a good guy - I merely pointed out that, contrary to claims, he has interests and hobbies that lie outside the stock market.

That's absolutely fair enough - they were unfair and unsubstantiated claims anyway. Although by pointing out Icahn's (proportionately limited) charitable works instead of, say, his love of horses, I just wanted to point out that he wasn't the reincarnation of Mother Teresa - just for the benefit of anyone who hadn't heard of him before and only had that to go on. For example, those ten students every year whose education he pays for probably think he's a great bloke - whereas the tens of thousands whose parents lost their jobs (from largely profitable companies) and then couldn't afford to go to university themselves probably have a rather less admiring view of him.

Carl Icahn is to business and industry what a demolition expert is to construction and engineering: He may have an intimate knowledge of the subject, but only so that he better knows how to tear it apart.

(Apologies to any demolition experts out there for the insulting comparison).

Anyway, back on topic: It'll be interesting to see what Dell does next...
Rich_13 21st September 2013, 22:32 Quote
Its about time the released another Windows Phone ^^
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