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Privatization is not only happen for small cap, but big cap company as well. Is it a wise move?

Dell to go private in landmark S$30.2b deal

NEW YORK — Mr Michael Dell will take Dell private for US$24.4 billion (S$30.2 billion) in the biggest leveraged buyout since the financial crisis, a deal that allows the billionaire Chief Executive to attempt a revival of his struggling computer company without Wall Street scrutiny.

The deal, which requires shareholder approval, would end a 24-year run on public markets for a company that was conceived in a college dorm room and quickly rose to the top of the global personal computer business — only to be rendered an also-ran over the past decade as PC prices crumbled and customers moved to tablets and smartphones.
Dell profit falls amid bid to privatise

SAN FRANCISCO — Dell yesterday reported a 31-per-cent drop in profit, hurt by a shrinking consumer business, as investors weighed founder Michael Dell’s offer to buy out the world’s No 3 maker of personal computers.

Mr Dell, teaming up with private equity firm Silver Lake and software maker Microsoft, is offering US$13.65 (S$16.90) a share to buy out the company, but at least two of its largest investors are opposed to the US$24.4-billion deal.
It seems Dell attracted investors' interest, beside the founder. Big Grin

Three-way battle to buy out Dell

NEW YORK — Dell appeared to have received competing offers following a US$24.4-billion (S$30.5-billion) agreement last month to be taken private by its founder and private equity firm Silver Lake, setting up a tug-of-war for the world’s No 3 personal computer maker.

Blackstone Group submitted an indicative and preliminary offer ahead of the expiration of a “go-shop” period on Saturday that allowed Dell to explore other options, a person familiar with the matter said.

The buyout firm has not yet arranged bank financing, though it has put potential lenders on standby, according to a second source.

Billionaire investor Carl Icahn, who has built up a minority stake in Dell and opposes the offer by founder Michael Dell and Silver Lake, also made an offer, according to The Wall Street Journal.
Dell is so attractive? Big Grin Further info on the Three-way battle

Billionaire opens door to Blackstone tie-up on Dell bid

SAN FRANCISCO — Two of the most prominent United States investors could upset Mr Michael Dell’s US$24.4 billion (S$30.4 billion) buyout bid for Dell, after billionaire Carl Icahn opened the door to an alliance with the Blackstone Group to wrest control of the computer maker from its founder.

Mr Icahn yesterday said that he has started preliminary talks with Blackstone. Both sides have made bids that could be superior to the offer on the table from Mr Dell and private equity firm Silver Lake.
Pullout due to declining of PC sales? Tongue

Blackstone ends pursuit of Dell: Sources

NEW YORK – Blackstone Group has ended its pursuit of Dell, three people familiar with the matter said on Thursday, easing the way for founder Michael Dell and his private equity partner Silver Lake to go ahead with a US$24.4 billion (S$30.1 billion) deal to acquire the world’s third-largest PC maker.

New York-based Blackstone pulled out just a month after it first launched a challenge to the billionaire’s attempt to take private the PC maker he founded.
The best timing for privatization is during sales shrinking... Tongue

Dell’s profit dives 79% as PC sales shrink

SAN FRANCISCO — Dell, the subject of a takeover battle between activist investor Carl Icahn and the company’s billionaire founder, reported a 79-per-cent slide in profit as personal computer sales continued to shrink.

Founder Michael Dell wants to take the PC-maker private for US$24.4 billion (S$30.5 billion), arguing that its transformation into a provider of enterprise computing services, from mainly a computer maker in a shrinking market, is best done away from public scrutiny.
Update on Dell buyout...

Dell buyout vote too close to call: Source

NEW YORK — World no 3 PC maker Dell may delay a shareholder meeting on a US$24.4 billion (S$30.7 billion) buyout offer from founder Michael Dell and private equity firm Silver Lake Partners, with the pivotal vote too close to call, a source said yesterday.

The board is considering the delay as part of contingency planning for the vote, which is scheduled for tomorrow, this person added.
In US, the voting rule is "negotiable"?

Dell buyout teeters due to rejected voting change

NEW YORK — Mr Michael Dell’s and Silver Lake’s US$24.4 billion (S$31 billion) bid to take Dell private suffered a blow yesterday after the company’s special committee rejected their request to change the voting rules in exchange for them offering US$150 million more.

Dell shares fell more than 4 per cent on the news to as low as US$12.28, their lowest level since word of the takeover emerged on Jan 14.

The Chief Executive has been arguing since February that Dell needs to restructure as a private company to respond to the challenges posed to its computers by smartphones and tablets.

The special committee, set up by Dell to assess whether shareholders were getting the best deal, refused to change the voting rules on the deal but said it would be willing to move the vote’s record date forward.
Mr. Dell's privatization plan is full of troubles...

Icahn sues Dell in latest attempt to foil buyout

NEW YORK — Activist investor Carl Icahn yesterday sued Dell and its board, his latest attempt to derail a US$24.4 billion (S$31 billion) buyout bid by the computer maker’s founder and CEO, Mr Michael Dell.

Mr Icahn asked a court to block rule changes proposed by Mr Dell has proposed ahead of a shareholder vote set for today. Mr Icahn and his affiliates also want the court to stop Dell from changing the record date by which shareholders must have purchased their shares in order to vote.
There is no doubt that Michael Dell wants it and wants it bad. But Icahn will not let go so easily. the drama continues with another 13cents special dividend plus 13.75 per share.

Will he succeed this round?
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