Michael Dell and Silver Lake have increased their buyout bid in the deal that would take Dell private. However, they want a change in shareholder voting rules that would make it easier to get approval for their offer.
Poornima Gupta, Soyoung Kim and Greg Roumeliotis with Reuters reported, “Dell Inc founder Michael Dell on Wednesday raised his $24.4 billion bid by $150 million but the sweetened offer is contingent on a key change to the shareholder voting rules that will make it easier for him to take the No.3 personal computer maker private.”
Steve Schaefer with Forbes explained, “In a letter to a special committee of the PC-maker’s board Wednesday morning signed by Dell and Silver Lake’s Egon Durban, the group offered to raise its bid from $13.65 per share, but only on the condition the Dell board does not count unvoted shares as ‘no’ votes on the offer.”
All Things D’s Arik Hesseldahl added, “Dell and Silver Lake Managing Partner Egon Durban called their increase their ‘best and final offer.’ Dell’s board adjourned the shareholder meeting that had been scheduled for today until the afternoon of Aug. 2.”
Bloomberg’s Callie Bost noted that investor Carl Icahn, who opposed the deal, also opposed rescheduling the meeting and delaying the vote again. “We think that –- after six months –- the time for soliciting is over,” wrote Icahn and two Southeastern Asset Management executives in a letter to the committee. “It’s time to vote. Do not move election day again. This is not a banana republic.”