Dell CEO reportedly won't raise offer to take PC company private
Dell's business future is looking murkier by the day, especially as it looks like negotiations have hit a stalemate.
Bloomberg reported on Friday, based on unnamed sources, that the team of CEO Michael Dell and Silver Lake Management will not raise its $24.4 billion proposal to take the PC company private.
However, the report also suggests that investors will oppose the bid when pressed to vote soon.
The next Dell shareholder meeting is scheduled for July 18.
Earlier this week, Dell investor and business magnate Carl Icahn requested a meeting with Dell's special committee on the matter after lining up approximately $5.2 billion in loans to back his alternative buyout bid.
Icahn's ongoing plan to prevent Dell from going private has long been supported by Southeastern Asset Management Inc., one of the largest Dell shareholders.
In June, Icahn presented the alternative proposal, pressing for the company to offer $14 for each of its approximately 1.1 billion shares.
To recall, as of June 5, the Round Rock, Texas-based corporation had two options on the table:
- An all cash deal from Michael Dell and Silver Lake Partners for $13.65 per share
- An alternative from Icahn that leverages the company to pay a $12 special dividend
Blackstone was previously involved in the mix but later dropped out amid the global PC market meltdown.
However, the special committee rejected Icahn's bid as "inconsistent."