Dell Board May Delay Shareholder Buyout Vote

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July 16 (Bloomberg) -- Crawford Del Prete, chief research officer at IDC, examines the possibility of Dell delaying a shareholder vote on the buyout offer by founder Michael Dell and what it means for the company's future. He speaks on Bloomberg Television's "Market Makers."

On thursday to some point in the future.

What does that say to you?

It says they want to take more time to weigh their options.

I think they definitely -- it opens up the possibility that they want to do some more selling to existing shareholders to try to tell their story.

I think it opens up possibilities that the michael dell team could raise their offer.

How likely do you think that is at this point?

It seems like the shares are trading below the offer price.

Can we take anything away from that?

What i take away from that is that there is a lot of uncertainty around the carl icahn deal.

There is speculation within the carl icahn deal.

Investors are trying to figure out how to play this.

I think as you guys know, the market hates uncertainty.

That is playing out in the stock price going forward.

I think that is the question that investors need to be asking themselves.

Introducing more uncertainty into the dell story going to be good long-term?

I would say it is not.

One thing we have been hearing is there are 20% of the stockholders that would rather take the deal on the table than risk the stop -- stock dropping further.

There are a lot of different numbers out there.

I think there is an element of that at play.

That element gets higher as we get closer to thursday's before your breaking news.

People are saying i want to be done with this and i want to move forward.

What do you think of the proposal?

I think they're optimistic.

I think what you see here is and the question you have to ask yourself -- going forward under the carl icahn plan, will the company be better decisions to grow?

-- positioned to grow?

There could be management turmoil and public scrutiny of the markets.

I don't think it will be able to fix the software business.

I think it takes away flexibility.

What about the psychological dynamics at play?

This is a law of the jungle type scenario.

Michael dell and silverlake, if they were to delay this vote because they are working hand in glove with the board look like a wounded animals.

If they are wooded animals, you know what carl icahn is going to do.

Those are your words, not mine.

I think there are a number of ways to skin this or you don't --spin this.

I think that carl icahn has come back late in the game with what he is putting forth as a better offer.

I think it is plausible for michael dell and for his team to be able to say let's sharpen our pencils and take a closer look at this and see if there's a way we can get a better valuation.

That does not change what i am talking about a few minutes ago.

Look at hewlett-packard.

Have they been able to execute with their plans?

I would say absolutely not.

I don't see how uncertainty is a good thing going forward.

This text has been automatically generated. It may not be 100% accurate.


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