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With shareholder lawsuits getting underway, details about the Dell (DELL) board's due diligence...

With shareholder lawsuits getting underway, details about the Dell (DELL) board's due diligence leak out. Breaking the company up into a PC business and a data-center operation was one consideration. Also explored was the a dividend recapitalization. At the end, the board decided a buyout was the best path.
Comments (1)
  • Two obvious paths: Stock buybacks and business realignment - including selling/spinning off part of the legacy PC and server businesss, and boosting the growth businesses (SW/services). However both of these would have been pro-shareholder. Why be pro-shareholder when Dell/board/PE can cash out on an LBO?
    5 Feb 2013, 03:22 PM Reply Like
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