Dell Buyout Pursuit Likely Killed by Board Decision

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

July 31 (Bloomberg) -- Bloomberg deal reporter Cristina Alesci reports that founder Michael Dell is unlikely to pursue a deal at $13.75 after Dell's board committee refused to change a rule that would make it easier for the buyout group to win shareholder support. She speaks on Bloomberg Television's "Market Makers."

What does today's decision by the special committee mean for michael dell?

It looks like michael dell is willing to see this whole thing fall apart over $.10 after months of back-and-forth.

It is quite incredible.

If you look at that in terms of it is all -- it is not that much in terms of things.

This deal could fall apart over that's just along.

Remember, michael dell was asking the committee to ask the mayor -- the shareholders to vote in favor of the deal.

That provision along with the rest of the voting requirements on this deal really protected the special committee -- not from being sued, but any future lawsuits that would've claimed that they were running a less than prescreen deal process here.

It was almost impossible for them to agree to reduce a shareholder protection at this point.

There have been many twists and turns in this deal that have been unprecedented.

If they had agreed to something like that, it would have been at least as far back as i can remember one of the few times that the rules were changed midway through the game.

How does this announcement impact the actual vote and the time of the vote?

Is it still set to go on track on friday and not be delayed a third time?

It looks like as far as this very moment goes right now, it looks like we're back at the $13 .65 price that the group is not going to increase their bid any further without back in session on voting rights.

It looks like they will not delay any further.

If they do delay any further, the special committee is opening itself up to criticisms again i could come back to haunt them in lawsuits because judges do not like multiple delays of shareholder votes.

It just seems like you are manipulating the process.

One thing that did come out of today was the special committee agreed to change directive dates, moving it up a bit, which will allow more recent shareholders that came into the stock hoping a deal would be done at $13.65 to go ahead and vote.

That doesn't bode well for michael dell and silver lake.

The question is if the enough to help their vote?

Michael dell completely skirted the question.

We don't know yet, it is too early to tell how it may change the dynamic overall.

Does that mean that apart from the change of the record, we are effectively back where we were on june 24 were shoulders had a choice, either take the $13.65 on the table for michael dell and silver lake, or rejected and take their chances with carl icahn?

Yes.

It is like the last month did not happen, basically.

At this point, shareholders have an extreme amount of deal fatigue.

It would not have been really helpful to michael dell and silver lake to go ahead and offer that $.10 because people are so tired and so fatigued in this process that $.10 without the concession probably would have gotten the deal done, nothing for sure, obviously.

It is amazing, really, to think what could have been.

Cristina alesci, our bloomberg deals reporter on the phone with

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

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change