Seeking Alpha

Dell investors set to vote on buyout - or not

  • Dell (DELL) shareholders are due to convene yet again today to decide on whether to accept Michael Dell's and Silver Lake's buyout proposal. The ballot has already been postponed twice.
  • The offer to be voted on is the group's $13.65-a-share bid rather than their higher $13.75 proposal, which is contingent on abstentions not being counted as "no" votes.
  • Dell's special committee has rejected that condition, but has offered to change the date of record, which would cause the ballot to be delayed again and could benefit Michael Dell, but which has provoked a lawsuit from Carl Icahn.
  • Given the closeness of the vote, retail investors, who reportedly hold 11% in Dell, have suddenly become very important.
Comments (2)
  • Chris DeMuth Jr.
    , contributor
    Comments (4040) | Send Message
     
    Not.

     

    This will be postponed a third time.

     

    $13.75.

     

    Change of record date will be accepted.

     

    Retail investors should anticipate attention from the proxy solicitors.

     

    It would be reasonable to expect rational, self-seeking, resourceful players to push this to the brink today, then by 10 AM to move the record date, increase the price by $0.10, add a $0.25 special dividend, and hold a vote subsequently. The buyers have played this well and have not wasted a penny for any unnecessary votes. Mine was extremely marginal and would not be surprised if it is around the "1" in "50% + 1".
    2 Aug 2013, 07:03 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4040) | Send Message
     
    Bid = $13.75. Ask = $14.00. Splitting the $0.25 difference surmountable around $13.88 or so.
    2 Aug 2013, 07:14 AM Reply Like
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