Dell Shareholders Approve Michael Dell's $24.9 Billion Offer
Based on the preliminary results of today's special vote, Dell shareholders have approved the transaction authorizing Michael Dell, its founder, chairman, and CEO, to acquire the firm with private equity group Silver Lake Partners in a $24.9 billion deal, the company has announced.
This comes just three days after activist investor Carl Ichan dropped his bid for the company, while continuing to voice his opposition to Michael Dell and Silver Lake's offer.
The company says the deal was approved both by the majority of Dell's current holders of outstanding shares, as well as a majority of those excluding the positions held by Michael Dell, his family trusts, the board of directors, and certain members of its management.
Under the terms of the deal, shareholders will receive $13.75 in cash for each share they own as well as a one-time cash dividend of $0.13 per share, for a total of $13.88 per share. It also includes a provision guaranteeing the third-quarter dividend of $0.08 per share.
Michael Dell was quoted in the company press release as saying that as a result of the transaction and Dell's becoming "a private enterprise, with a strong private-equity partner" it will serve customers "with a single-minded purpose and drive the innovations that will help them achieve their goals."
The final estimate of the total transaction value for the technology firm founded in 1984 is $24.9 billion. The transaction is anticipated to close in the next two months.
Like other PC makers, Dell has been hit hard in recent years as consumers shift their buying habits away from traditional desktops and laptops and toward tablets and other mobile devices.
Last month, Dell reported a 72% drop in profit for its most recent quarter, as the company cut prices to shore up computer sales. Dell's stock has plunged by more than 40% since Michael Dell returned for a second stint as CEO in 2007. As of this writing, Dell's stock had gained a penny on Thursday, to $13.86.
-- Material from The Associated Press was used in this report.
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