Michael S Dell’s effort of several months to buy the company that bears his name was thrown into jeopardy Wednesday, as a special committee of the computer maker’s board refused his demand to change the voting rules on the huge buyout.
Dell shareholders are set to decide the fate of the deal on Friday, absent an 11th-hour change of heart from either the board or Dell and his partner, the investment firm Silver Lake. As it stands, the offer of $13.65 a share, or a total of $24.4 billion, to take the company private, is likely to lose the shareholder vote, people close to both sides say.
If Michael Dell is unable to take his company private, Dell will face even fiercer competition in the already cutthroat PC business. For several months, industry analysts say, Dell has been cutting prices on the machines it sells to businesses, reducing already thin profit margins to win customers.
It’s board have warned Dell’s stock could plummet into the $8 range if the deal collapses. NYT