Seeking Alpha

Dell committee backs new offer, abstained votes to be ignored

  • Dell's (DELL +4.7%) special committee supports Michael Dell and Silver Lake's revised offer, which includes a $0.13/share special dividend to go with a $13.75/share purchase price, and a guarantee Dell's $0.08/share Q3 dividend will be paid.
  • The committee has agreed to change the date of record for the deal to Aug. 13 from June 3, and (more importantly) has changed the voting rules to ignore abstained votes. Only a "majority of disinterested shares actually voting on the matter" is needed.
  • Dell's special meeting has been adjourned until Sep. 12.
  • The deal's breakup fee has been lowered to $180M from $450M.
  • Dell shares have jumped, but are still trading a little below the deal's offer price.
  • Previous
Comments (9)
  • Chris DeMuth Jr.
    , contributor
    Comments (4187) | Send Message
     
    Game, set, match. On to the next one.
    2 Aug 2013, 09:49 AM Reply Like
  • SA Editor Samir Patel
    , contributor
    Comments (163) | Send Message
     
    Well-played by Michael Dell. $13.65 was never their "best and final" offer.
    2 Aug 2013, 11:14 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4187) | Send Message
     
    Well played and they did not waste any money on paying for many more votes than necessary (but I own seven and a half bucks of DELL, so wish they were willing to throw around money unnecessarily).
    2 Aug 2013, 11:17 AM Reply Like
  • Quoth the Raven
    , contributor
    Comments (2070) | Send Message
     
    This was easy money, as predicted days ago:
    http://seekingalpha.co...
    2 Aug 2013, 02:11 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4187) | Send Message
     
    Good call; well done.
    2 Aug 2013, 02:21 PM Reply Like
  • CDM Capital
    , contributor
    Comments (434) | Send Message
     
    We predicted at an even lower price on the 31st. ;)

     

    http://seekingalpha.co...

     

    10% + for just a few days, not too bad...
    3 Aug 2013, 11:52 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4187) | Send Message
     
    Congratulations.
    4 Aug 2013, 05:27 AM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3658) | Send Message
     
    To clarify here, the closing will be $13.96 total ($13.75 + $.21c dividend), so still 2.3% of upside?
    2 Aug 2013, 02:31 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4187) | Send Message
     
    Correct. That is the straight up return. It is likely by November 1, 2013.
    2 Aug 2013, 02:52 PM Reply Like
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