Seeking Alpha

Michael Dell and Silver Lake are "prepared to see [their] deal blow up" rather than raise their...

Michael Dell and Silver Lake are "prepared to see [their] deal blow up" rather than raise their bid above $13.65/share, sources tell AllThingsD's Arik Hesseldahl. Concerns about Dell's (DELL) PC business and rising borrowing costs are said to underpin their reluctance to pay more. As it is, Bloomberg reported earlier this month Silver Lake's commitment to the deal was wavering. Meanwhile, a source tells Fortune's Dan Primack Dell's special committee believes ~15% of shares will qualify as absentees, which are effectively "no" votes. (previous)
Comments (6)
  • At least 40% of the share are not going to be voted for this deal and the buyers appear to be committed to treating their bid as "full and final". Thursday will be interesting.
    16 Jul 2013, 06:51 PM Reply Like
  • Would be very interesting to see Carl Icahn take the day, Michael Dell walk away with Carl's cash, and set off into the sunset.


    Stranger things have happened.
    16 Jul 2013, 07:02 PM Reply Like
  • Better do it while financing is still cheap
    16 Jul 2013, 09:23 PM Reply Like
  • The stock is head for about $10.08. Which is 72c on the dollar for the $14 cash deal icahn made. (Thus buying at $10.08 and selling to icahn at $14 with extra stub for free + warrants. Could fall below that if icahn fails to succeed in take over
    16 Jul 2013, 10:30 PM Reply Like
  • Think lower...stock was at 8 dollars a share before buyouts talks started. So now it will be lower automatically. I would say more in the $6 USD range. Would not be a good thing for any share holder to let this fall through.
    17 Jul 2013, 08:16 AM Reply Like
  • Is Mr. Dell willing to see his family name fade into history if/when Icahn splits up the company and sells the assets to the highest bidders?


    Buyers aren't likely to keep the Dell name if they acquire the recent Dell acquisitions. I imagine Mr. Dell will be very sad if/when Icahn sells the beleaguered PC division to an Asian tech company for lunch money.
    16 Jul 2013, 10:57 PM Reply Like
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