Dell Investor Gets Serious About Low Price

Before you go, we thought you'd like these...
Before you go close icon

Dell HQSoutheastern Asset Management intends to push harder against the buyout of Dell Inc. (NASDAQ: DELL) by founder Michael Dell and his partners. Southeastern, which owns a stake of about 8.44% in Dell, said in a Securities and Exchange Commission filing this morning that it has hired proxy solicitation firm D.F. King & Co. A logical conclusion is that King & Co. is being brought on board to launch a campaign against the $24 billion ($13.65 a share) takeover.

As we noted last week, for many Dell shareholders this takeover is really a "takeunder." Shareholders who have owned the stock for about a year or more are mostly looking at an offer they can easily refuse. It is those investors that Southeastern will target.

Dell has a 45-day "go-shop" period during which the company and its advisers at Evercore may seek a better offer. There is a $180 million breakup fee for a successful competing bid, while any unsuccessful bid will boost the termination fee to $450 million.

Southeastern is pushing for a per share price of $24, well above the current offer. Dell stock has not traded above $24 since the summer of 2008.

Dell's shares are trading today at $13.75, in a 52-week range of $8.69 to $18.36.

Filed under: 24/7 Wall St. Wire, Activist Investor, Hardware, Mergers and Buy Outs, Shareholder Issues Tagged: DELL
Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading