Micheal Dell ups his bid for Dell Computers

3 Aug

 

In February of this year Jeff first brought you the story of how Micheal Dell is trying to buy back the company that he founded 29 years ago. Mr. Dell and Silver Lake investments offer of $24.4 billion ($13.65 per share) at that time but have seen several set backs due mainly to claims by one man,Carl Icahn, that the offer is too low. According to a report by Reuters as of yesterday that offer has now risen to $25 billion ($13.88 per share).

“We are pleased today to have won yet another battle, but the war regarding Dell is far from over,” Icahn said in a Friday statement. “We are not satisfied. We believe that an increase of a mere 13 cents is an insult to shareholders.”

One of the other roadblocks that Micheal Dell and Silver Lake have faced is that they are not the only ones bidding to buy all or a majority of the company. A little over a month after Mr. Dell and Silver Lake made their initial offer to buy the company both Carl Icahn’s Southeastern Assets Management and the Blackstone Group made their own separate bids for Dell Computers. In the case of Mr. Icahn the bid was to buy a 58% of the company to take a majority control blocking Micheal Dell from taking it private.

“We are fighting the current proposal, which misappropriates from our clients the option to share in Dell’s future success, forcing them instead to sell at a price we believe is inadequate and reflective of the recent PC struggles,” Southeastern stated in the most recent letter.

Over the past few years the sales of desktops and laptops have been on the decline as mobile devices have been on the upswing. Dell Computers has fallen behind in keeping up with this growing trend and fallen on some hard times. Micheal Dell thinks that by taking the company private so that it is not under the restraints off public scrutiny he will be better able to do what is necessary to bring the company back on track and ready to compete in today mobile market.

For more on this topic you might try the following articles:

 

 

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