Dell’s $24.4 Buyout Scares Some Shareholders

(Ping! Zine Web Tech Magazine) – Amid a flurry of uncertainty, computer maker Dell most recently sought to reassure troubled shareholders that a buyout of the company was a positive step, a report from signaled Monday.

The company highlighted what it saw as benefits to an acquisition by founder Michael Dell in partnership with private equity firm Silver Lake.

In a regulatory filing, the company noted alternate bids could allow shareholders to weigh options.

The buyout has proven to be a disappointment to Southeastern Asset Management which has urged the company to propose an alternative.

“We are writing to express our extreme disappointment regarding the  proposed go-private transaction, which we believe grossly undervalues the Company.  We also write to inform you that we will not vote in favor of the proposed transaction as currently structured.  We retain and intend to avail ourselves of all options at our disposal to oppose the proposed transaction, including but not limited to a proxy fight, litigation claims and any available Delaware statutory appraisal rights,” stated the asset management company via a letter.

Clients of the firm currently own 8.5% of Dell’s shares. The totality of the Dell transaction is currently valued at $24.4 billion.