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Journalism of Courage
Dell Inc called on shareholders on Friday to approve a $24.4 billion buyout offer by founder and CEO Michael Dell and private equity firm Silver Lake,saying the bid was superior to other strategic options. Activist investor Carl Icahn and Southeastern Asset Management launched a counter offer for Dell earlier this month that would allow shareholders to keep their shares.
Dell shareholders are scheduled to vote on the Michael Dell/Silver Lake offer at a special meeting on July 18.
Dells board said in a letter to shareholders that it had looked into the possibility of continuing with or modifying the PC makers business plan,changing its dividend policy,selling to a strategic buyer,and selling or spinning off parts of the business. It did not mention the Icahn offer.
A sale to the Michael Dell/Silver Lake group … is the best alternative available – in a challenging business environment it offers certainty and a very material premium over pre-announcement trading prices, Dell said.
