Dell CEO Appears to Have Votes for $25 Billion Buyout Bid
Shareholders will vote Sept. 12 on whether to support Michael Dell’s efforts to buy the company and take it private.On the eve of a shareholder vote that will determine the future of his namesake company, Dell CEO Michael Dell appears to have the wind at his back. On Sept. 9, activist investor Carl Icahn gave up his long-shot bid to detail Michael Dell’s $25 billion proposal to buy the world’s third-largest PC maker and take it private, though not without taking a few swipes at the CEO and the company’s board on the way out. And now reports based on anonymous sources are coming out saying that Michael Dell appears to have the necessary shareholder support for his bid to be approved when the numbers are made public Sept. 12. According to a Bloomberg News report citing an anonymous source, investors who hold about two-thirds of the voting shares are supporting the deal. It’s a significant change from only two months ago, when Icahn and other major investors were aggressively pushing back at the transaction, saying that it undervalued the company, and the shareholder vote had to be postponed three times over concerns that the CEO and financial backer Silver Lake Partners did not have enough shareholder support to approve it.
Those concerns appear to be in the past.