Dell's (DELL -0.9%) LBO proxy will show "the extreme challenge and unpredictability" the company...


Dell's (DELL -0.9%) LBO proxy will show "the extreme challenge and unpredictability" the company is facing in its badly slumping PC business, David Faber reports, while adding a forecast for $3.7B in FY14 (ends Jan. '14) operating income may be significantly revised lower. Faber also notes Silver Lake initially bid just $11.22/share for Dell, before gradually raising its offer to $13.65. Dell is down $0.12 today to $14.14. (previous)

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Comments (8)
  • Chris DeMuth Jr.
    , contributor
    Comments (10638) | Send Message
     
    They will make it look as bad as possible: "Look at this worthless company... you should thank us for taking it off of your hands".
    15 Mar 2013, 10:59 AM Reply Like
  • Thomas Sobon
    , contributor
    Comments (1364) | Send Message
     
    Mayby the situation at Dell really is as bad as the commentary coming out by the likes of CNBC, Fortune Magazine, and the Motley Fool among others say it is. I recently posted an article called "Is Dell a disaster begging to happen?" The operational risk at Dell really is substantial.
    15 Mar 2013, 12:51 PM Reply Like
  • tonto13
    , contributor
    Comments (4) | Send Message
     
    I agree. The Board spokesperson will now make Dell look like loser so that we feel fortunate to have the buyout firm buy it for a song.
    I don't know about some of the rest of you shareholders, but I think Dell is worth more than the proposed buyout of $13.65. Probably about $20.
    16 Mar 2013, 01:40 PM Reply Like
  • NWInvestments
    , contributor
    Comments (31) | Send Message
     
    If you watch this video, Michael Dell gives indications that the PC portion of their business is basically small and unimportant, I believe he said 250 billion total market, against a 3 trillion dollar market in the enterprise space.

     

    They are really hyping the losses in a segment of the business which they are hardly relying on for the future of the company in order to take this company private on the cheap.

     

    http://bit.ly/ZFE6yS
    15 Mar 2013, 01:14 PM Reply Like
  • zubikov
    , contributor
    Comments (99) | Send Message
     
    Dell went from having the most desired to most despised consumer and business PCs and service. It tried to copy IBM's mini-me through a series of ill-timed acquisitions without a strong plan. The firm is a mess, and since these proxies are required to be mostly factual by law w/o any forward looking statements, I can totally see how ugly the company really looks.

     

    There's no room for it in public markets, it'll get destroyed. Shareholders should indeed be happy with what they're getting, cause it ain't getting better going forward. The right plan is to take it private, chop off the ugly parts, create good LT strategy, sell off parts of business that don't fit.
    15 Mar 2013, 01:18 PM Reply Like
  • NWInvestments
    , contributor
    Comments (31) | Send Message
     
    The people in the business world who have to do heavy work are not going to sit at a desk and use a iPad. The market is far too pessimistic on the business side of the PC market as whole. PCs are now a commodity business, take your pick. Dell, HP, Toshiba, it really doesn't matter a PC is a PC. Dell will suffer some from the consumer market, but not as badly as they are squealing about.

     

    The business/enterprise segment is doing just fine, and the adoption of certain cloud services will dramatically streamline complexity out of the system and allow Dell to achieve higher margins and spread out across a much wider customer base much more rapidly. Cloud customers are very sticky, typically with recurring revenues locked in via contracts.

     

    Michael Dell has used public shareholders money to acquire a lot of players in the cloud space and position the company to pursue this agenda in the enterprise/business space, and it is huge. It dwarfs the consumer space, and he knows it. He doesn't need to do anything in PCs except for curb it's ability to create significant losses for the whole company. They might come out with a tablet or two, but Dell does not want to spend its time chasing decreasing margins in the tablet market with Apple, Amazon, Samsung. They want to control the cloud space in the enterprise.
    15 Mar 2013, 03:34 PM Reply Like
  • ZBNW
    , contributor
    Comments (138) | Send Message
     
    This is alllll about making a deal, otherwise they would come out with clear evidence why a $15-$25/share price tag is ludicrous given the future. It still looks as though it is the opposite, the company doesn't have to rely on comp sales and even there they continue to innovate, the XPS 18 tablet is honestly one of the more legitimate pc replacement tabs I've seen, and starting at $899 compared to its closest 18'' tablet competition from ASUS starting at $1299 (I'm an ASUS laptop user) proves they must be either innovating or selling at a considerable loss. New products and services in the pipeline signals the start of something good for Dell, why not for it's long-time investors?
    15 Mar 2013, 04:52 PM Reply Like
  • pundr
    , contributor
    Comments (42) | Send Message
     
    simple ask yourself the question, when dell is such a bad company, why michael dell wants to buy it? why he risk so much, if dell is in such trouble as cnbc, ny times, and all other stupid media and analysts tell us. it is idiotic!!!! if dell is in such bad shape, michael dell would sell and run away, very fast. but they are trying to take it private. profit from the low buyout, make a lot of money. fire people, streamline the operation. earn a lot of money and laugh about all the little people with a few stocks in there portfolio. I hope icahn, southeastern bring this to a fair solution. dell is undervalued. maybe not 22$ but at least 17-20$. so i wait and and iam sure icahn will win this.
    16 Mar 2013, 06:14 PM Reply Like
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