Dell sets date for shareholder vote on buyout deal

Dell plans to hold a shareholder meeting on July 18 to decide whether or not to take the firm private.
Written by Charlie Osborne, Contributing Writer

Dell will hold a meeting on July 18 for shareholders to vote on founder Michael Dell's proposed buyout deal worth $24.4 billion.

As reported by Bloomberg, the PC maker's board has recommended that the deal be accepted as no better offers were brought forward in the "go shop" period.

Michael Dell's proposal, together with private equity firm Silver Lake Management, is worth $24.4 billion -- or $13.65 per share. A number of investing parties believe that the offer is "selling Dell on the cheap," and the world's third-largest PC maker should not necessarily be taken private and fully under the founder's control.

Shareholders -- with the exception of the founder, Michael Dell and his 15.6 percent stake -- must approve the proposal to go private. However, a number of investors have vocally opposed the deal. Two of the tech giant's most prominent investors, Southeastern and Carl Icahn, have proposed an alternative route for shareholders to take -- which would give investors either $12 per share in cash or $12 in additional shares for each share currently held, financed through $5.2 billion in debt financing and the company's remaining cash reserves.

Together, Icahn and Southeastern account for 13 percent of Dell stock.

Dell's board do not believe that Icahn's offer is superior to the company founder's, but a special board committee has requested additional information concerning the terms of the alternative offer before it can be processed. If Icahn's offer is accepted, the investor plans to remove Michael Dell as CEO of the company.

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